Cryptocurrencies can improve the efficiency of the financial system, but should not be used to finance terrorism or launder money. This view was expressed by US Treasury secretary candidate Janet Yellen in written answers to questions from the Senate Finance Committee.
Yellen’s stance on digital assets looks more measured after her hearings before the Senate a few days ago. On that day she emphasised their role in criminal activity and pledged to monitor the industry after her appointment.
“We must consider how to encourage legitimate use of cryptocurrencies, while restricting their use in illicit activity. I intend to work closely with the Federal Reserve and other regulators on implementing an effective regulatory framework for all fintech innovations,” she told the Senate in a letter.
Dr Janet Yellen Senate Finance Committee QFRs 01 21 2021 by ForkLog on Scribd
As Chainalysis noted in 2019, analysts linked 1.1% of crypto transactions by value to illicit activity. In 2020 this figure fell to 0.34%.
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