The topic of cryptocurrencies has been frequently mentioned by US officials lately. This is primarily due to the massive imposition of sanctions against Russia. It is assumed that digital assets are able to circumvent possible restrictions, which has already become a reason for introducing various bills.

However, even the head of the FBI does not believe in such a prospect. According to him, using crypto on such a large scale is simply not possible.

Who supports cryptocurrencies

Here’s Yellen’s quote from her interview, published in Decrypt.

I am a bit sceptical about cryptocurrencies because I think there are valid concerns about the industry. Some of them have to do with financial stability, consumer/investor protection, use for illegal transactions and other things. On the other hand, cryptocurrencies are beneficial, and we recognise that innovation in the payment system through cryptocurrencies can be beneficial.


As a reminder, it is common for officials and other authorities to criticise cryptocurrencies for their volatility, i.e. sudden changes in exchange rates. More often than not, they present it as an opportunity to lose their hard-earned money. However, for some reason the experts do not mention the ability of coins to grow in value. For example, tonight Bitcoin exceeded the mark of 47 thousand dollars, although its price bottom from the end of January was 33 thousand. And that's a 42 per cent increase.

Yellen also acknowledges that cryptocurrencies are not a temporary trend, but an established financial mechanism:

Cryptocurrencies have certainly grown by leaps and bounds. And they now play a significant role, not in transactions, but in shaping Americans’ investment preferences.

US Treasury Secretary Janet Yellen

“The treasury secretary’s change of tone can be attributed to obvious facts. Firstly, it is cash that is outperforming crypto by a huge margin in terms of popularity in illegal transactions – all because of blockchain transparency. Second, Bitcoin has already become a payment instrument in one country around the world, and it is possible that other countries will join it in the foreseeable future.

Earlier, US President Joe Biden instructed the Treasury Department and other government agencies to begin the process of creating a regulatory framework for the crypto industry. The executive order “Ensuring Responsible Development of Digital Assets” gives agencies several months to develop appropriate policies. Priorities are to protect investors and ensure US primacy in innovation.

US President Joe Biden

This is a point Yellen also commented on. The challenge, she said, is to provide “recommendations that will create a regulatory environment for the development of healthy innovation”.

The crypto industry does require a regulatory framework, but crypto-enthusiasts themselves are somewhat wary of regulators tasked with this task. Recall that as recently as last year, SEC chief Gary Gensler sought to expand his agency’s role, and to do so in a way that would allow it to oversee stackablecoins and some other crypto-sphere projects. Many believe that Gensler and the SEC are relying too heavily on heavy-handed regulation, not providing sufficient guidance on consumer behavior in the face of their proposed legislation.

Yellen has more influence than Gensler, who is rumoured to want her position. She is a cabinet member and the fourth highest ranking member of the executive. It was Janet Yellen who convened a presidential working group on financial markets in July 2021, comprising representatives of the US Securities and Exchange Commission, the Commodity Futures Trading Commission, the Comptroller of the Currency and the Federal Reserve. The aim of the merger is to begin drafting regulations on stablcoin.

SEC chief Gary Gensler


We believe the Treasury Secretary may never become an ardent Bitcoin fan, but her change of heart from radically negative to neutral toward crypto may already be seen by market players as a good precursor to the further development of BTC. Yet it is usually the traditional financial system that is putting the brakes on digital assets. And given what is happening, there is a chance that there will be fewer obstacles in the way of coins now.

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