Janet Yellen and Crypto Regulation
Janet Louise Yellen is an American economist who served as the Chair of the Federal Reserve, the United States’ central banking system, from 2014 to 2018. Since January 2021, she has been nominated as U.S. Treasury Secretary under President Joe Biden’s administration. As Treasury Secretary, Yellen will be responsible for overseeing a broad range of financial regulations including those related to cryptocurrencies such as Bitcoin and Ethereum.
Cryptocurrency regulation in the United States is still largely undefined due to its decentralized nature; however, some key regulatory developments have taken place since Janet Yellen took office at the US Department of Treasury in early 2021.
In February 2021, Yellen released a public statement on cryptocurrency regulation emphasizing that it was important for digital assets like Bitcoin to be regulated “in a way that both preserves innovation and combats illicit activities” while also recognizing their potential use cases in finance and commerce going forward. In her statement she emphasized that crypto should not become a means by which money laundering or other illegal activities can take place without consequence or accountability – something which many governments around the world are increasingly concerned about given crypto’s growing popularity across various industries (including gaming).
To achieve this goal, Yellen proposed implementing stronger Anti-Money Laundering (AML) measures along with Know Your Customer (KYC) protocols when dealing with digital asset transactions between entities located within different countries or jurisdictions. These measures would help prevent criminals from using cryptocurrencies for illegal activity by making sure all parties involved are properly identified before any transaction takes place – something which has already been implemented successfully by banks and other traditional financial institutions around the world for decades now but needs further adoption within crypto markets if we want them to remain safe for everyone involved in them over time.
Additionally, during her tenure so far at US Department of Treasury Janet Yellen has also mentioned exploring ways through which taxation could be applied more effectively on income generated via digital asset investments made domestically or abroad – something which would provide much needed clarity on how individuals should report profits / losses derived from trading these instruments come tax season later down year depending on where they live etc…
Overall it appears clear that Janet Yellen intends to take a comprehensive approach towards digital asset regulation; one which focuses heavily on preventing criminal activity while simultaneously providing new avenues through taxation/regulation so people can safely engage with cryptocurrencies without fear of breaking laws inadvertently over time – something which should ultimately benefit investors & enthusiasts alike going forward regardless if you’re based inside USA borders or outside them!
