The relationship between US Treasury Secretary Janet Yellen and cryptocurrencies has always been contentious. Beyond the criticism that the former president of the Federal Reserve has leveled against the tokens, its role now seems crucial in the regulations that Washington puts forward to regulate these assets. This has led to a statement from him published last night ahead of time that has caused the main cryptocurrencies to skyrocket in the last few hours. What has happened?
In a press release dated March 9, but released this Tuesday the 8th on the Treasury website, Yellen praised the executive order on the regularization of cryptocurrencies that the president of the United States, Joe Biden, finally signs this Wednesday assuring that the text strikes a balance balance between fostering innovation and dealing with potential risks.
Even though Yellen’s statement was promptly withdrawn, these mere phrases fueled positive sentiment in a sector that has long called for more regulatory guidance. The bitcoin it quickly rose 10% to $42,427, its highest level since March 2. The ether it also rose 8% in a day with significant risk aversion, as seen in the stock markets.
Privacy coins – so named for the greater degree of anonymity they offer users – were some of the biggest gainers in the last 24 hours, with Currency up 21% and Zcash 17%, according to data from CoinGecko.
“For years, the cryptocurrency market has been hampered by a lack of regulatory clarity in the US,” said Hayden Hughes, CEO of the Alpha Impact platform. “If clear guidelines are passed, this could be a watershed moment for the industry,” he says. Reuters.
“Under the executive order, the Treasury will partner with its interagency colleagues to produce a report on the future of money and payment systems,” Yellen also said. “Because the issues raised by digital assets often have significant cross-border dimensions, we will work with our international partners to promote strong rules and a level playing field“, he added.
Yellen also announced that her department will continue its work with the Financial Stability Oversight Board, which met last year to discuss stablecoins. The group published a report identifying the stablecoins and decentralized finance as two risk areas for US financial stability last December.
A few weeks ago, Bloomberg echoed that the launch of the executive order on digital assets by Biden was being delayed by a dispute between White House officials and Yellen herself.
Quarrels with the White House
The order, aimed at establishing a government strategy for digital assets, was expected to be signed at the beginning of the year, but the dispute between Yellen’s staff and officials at the National Economic Council appears to have slowed its progress.
According to the sources of the financial news agency, Yellen considers it unnecessary to include in the order any mention of a digital dollar issued by the central bank.
Biden’s executive order urges his government to “urgently” investigate the possibility of developing a central bank digital currency (known as CBDC, for its acronym in English), which are different from cryptocurrencies as they are protected by those financial entities. from a country. Biden’s order asks to evaluate “the possible benefits and risks” of that possible “digital dollar” and the “technological infrastructure” that would be necessary to issue it.
In his decree, Biden will also ask his government to provide him with recommendations on the cryptocurrency market in general, and examine the possible risks they present to financial stability or national security, including through illicit finance.
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