Janet Yellen, the Treasury Secretary, continues to point at unregulated crypto as a source of instability and concern in the United States.
Janet Yellen Still Thinks Crypto Is a Concerning Area
Not long ago, Yellen garnered criticism from lawmakers when she commented:
The inflation outlook still remains quite uncertain.
In other words, hard-working Americans can likely continue to remain in limbo about whether they will be paying high prices at the pump and in supermarkets. The situation has gotten completely out of control, and Yellen – like many individuals who hold positions in Biden’s corrupt and inept administration – is using the situation to push for further financial regulation and rules on citizens.
One of the reasons Yellen keeps pushing for more regulation is because of the allegedly growing use of crypto in America. Right now, much of this activity occurs outside the monetary spectrum, and Yellen is worried that this could be contributing to the present circumstances. She said in a statement:
There is the potential for continued volatility and unevenness of global growth as countries continue to grapple with the pandemic… These stresses can be transmitted and amplified to the broader financial system. The [FSOC] has taken steps to examine these risks, including reestablishing its Hedge Fund Working Group to develop an interagency risk-monitoring system and to propose options to mitigate identified risks.
Among those that appear to agree with Yellen is – surprise, surprise – Elizabeth Warren, a democrat senator from Massachusetts. During a recent hearing, Warren called for boosting oversight in the financial system, claiming that many of the organizations and financial powerhouses that were once thought too big to fail are beginning to show signs of weakening.
Speaking directly to Yellen, Warren commented:
Secretary Yellen, you, along with then-Fed Chair Ben Bernanke and former Treasury Secretaries Tim Geithner and Jack Lew, wrote a letter in 2019 opposing revised guidance. You stated that the changes would ‘neuter the designation authority’ and ‘amount to substantial weakening of the post-crisis reforms.’ You also say that the 2019 guidance would ‘make it impossible to prevent the build-up of risk in financial institutions whose failure would threaten the stability of the system.’
Less Regulation Is the Answer!
By contrast, Senator Pat Toomey – a republican from Pennsylvania – said that less regulation was likely the answer, and that companies like insurance firms, crypto exchanges, and asset managers should not be subjected to the same rules as standard banks. He said:
More fundamentally, the act of designating a firm as a non-bank SIFI [Systemically Important Financial Institution] signals to the market that the firm is too big to fail and would be bailed out if it became insolvent, thereby introducing moral hazard.
Some republicans – such as Senator Tim Scott of South Carolina – commented that one of the big problems is that many people aren’t returning to work despite there being many jobs in America.