Share this article
Janet Yellen Offers US Senate a More Nuanced Take on Crypto
“I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities,” Janet Yellen wrote.
By Nikhilesh De
Updated Sep 14, 2021, 10:59 a.m. Published Jan 21, 2021, 9:36 p.m.
Janet Yellen thinks it is important the U.S. considers the benefits of cryptocurrencies along with the potential for misuse.
STORY CONTINUES BELOW
The Treasury Secretary nominee said that while cryptocurrencies can be used to finance terrorism and other illicit activities, they also have the potential to “improve the efficiency of the financial system,” according to a written response to the Senate Finance Committee.
“I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities,” she wrote. “If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations.”
The written remarks, first published by Bloomberg, diverge slightly from her verbal response to a question about potential crypto use in terrorist financing, asked by Sen. Maggie Hassan (D-N.H.). At the time, Yellen called crypto a concern, saying she believes many are being used “mainly for illicit financing.”
These appear to be her first public comments on the cryptocurrency ecosystem since 2018, when she said that in her view many transactions were “illegal, illicit transactions.”
Read more: State of Crypto: What the Crypto World Should Watch for in the Biden Era
Yellen testified before the Senate Finance Committee on Tuesday ahead of a possible vote on her nomination. She has previously served as Chair of the Federal Reserve, the U.S. central bank, and has been a long-time economist.
During her confirmation hearing Tuesday, she said the U.S. would have to distribute more aid in the form of unemployment relief and support for public servants and local governments.
“Neither the President-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” she said in her opening remarks. “In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time.”
A confirmation vote is expected Friday, according to The Hill.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
U.S. Senate's Crypto Market Structure Bill Gets Messy as Calendar Weighs Down
The White House has shut down proposals, and lawmakers are circulating the Democrats' asks in what had been a close negotiation, revealing 11th-hour pressure.
What to know:
- Democrats shared a response to Republicans outlining their continuing priorities for a crypto market structure bill, which they said was intended to "reach an agreement and proceed towards a mark-up."
- The document laid out concerns with financial stability, market integrity and public officials' ability to trade and profit off of crypto, echoing concerns laid out in a framework Democrats shared in September.
- The Senate is running out of time in the Congressional calendar to hold a markup hearing — a key step toward progressing the bill — before 2025 ends.
Top Stories
