s treasury secretary, janet yellen. She is the u.s political establishment’s, insiders insider and the crypto ecosystem is now grappling with what her appointment to treasury will mean. Yellen is the fifth treasury head in bitcoin’s lifespan first was paulson and in terms of the bitcoin i’m suspicious about it. Okay – and maybe i just don’t, know enough about it then gatner. I don’t, think i really understand it. They viewed bitcoin as a curiosity and something of a fad, then came lou and the dire warnings began. We have to make sure it does not become an avenue to funding illegal activities. In 2017, steve mnuchin became treasury secretary and he took by far the most aggressive stance against cryptocurrencies that we’ve seen that’s, probably somewhat expected, though he came into power at the time of a dramatic bitcoin bull run, an initial coin, offering craze poured new investors into crypto Markets we had what looked to be a never ending price spike and in 2020 d5 stratospheric rise mixed with heavy institutional investment in bitcoin created a boom that left observers stunned literally, nothing like this had ever been seen before in financial history. Politicians were scared. Cryptocurrencies are a crock; our ability to have the dollar be. The chief means of international finance is what has underpinned our ability to impose sanctions. Then treasury secretary mnuchin spent his tenure flexing his considerable rhetorical muscles in favor of clamping down on cryptocurrency, so that it wouldn’t challenge the global financial order.
We want to make sure that bad people cannot use these currencies while claiming to promote financial innovation. He warned against crypto, led price bubbles, growing institutional dabbling and non bank issued stable coins. It was the most attention the us government had ever given bitcoin to that point, bitcoin is highly volatile and based on thin air. When bitcoiners saw this press conference at the white house, the direct attention was both celebrated by the ecosystem and gulped at bitcoin was clearly more than a fad. We’D arrived unwittingly, mnuchin bought bitcoin into the mainstream and in his final year at treasury, his goal was to turn chest beating into concrete policy real regulation. He rolled out plans to essentially ban non bank issued stable coins. He teamed up with fincen and the financial action task force and g7 leaders to ultimately roll out stifling wallet rules. He tried to push through all of this new legislation at the very last minute of his tenure and because it was all so rushed anything that was not yet through was frozen when the new administration came to power in this new administration, the treasury is headed by Janet yellen! Congratulations, madam secretary, congratulations, thank you. So will she pick up where mnuchin left off? We have heard before where she stands on bitcoin, because she was the fed chair from 2014 to 2018. as the head of the u.s central bank. She, too witnessed bitcoin’s coming of age, but she reacted very differently to mnuchin in part due to being at the fed.
Rather than treasury, the federal reserve simply does not have authority to supervise or regulate bitcoin. So is this low key response, a reflection of how she’ll act as treasury secretary, also not likely fed chair and treasury secretary are two very different roles and often conflated the incestuous nature of such appointments can easily lead a rational person to conclude treasury and fed functions. Are interchangeable legally they’re, not the fed operates in a kind of political purgatory. It’S not audited, its machinations are largely secret, they’re prohibited from auditing or getting any answers from the failing. Yet they have more money and more control over our lives and your dollars and you don’t have any right to know anything about it, whereas the treasury is in charge of financial regulation, the treasury’s labyrinth bureaus include the u.s mint and the irs among many many others. It has tens of thousands of employees and a budget in the billions, so while yellen may have wanted to stay out of bitcoin as fed chair, she’ll likely dive right in as treasury secretary simply due to the nature of her new role. She is, after all, a dc creature comfortable in the trappings of government power and well regarded in the corridors of finance and regulatory agencies. Cryptocurrencies are used, at least in a transactions sense, mainly for illicit finance. The biden administration is expected to nominate former ripple advisor michael barr to head the occ chris brummer is said to be biden’s, cftc chair and is considered a crypto literate regulator, if not somewhat sympathetic, gensler is set to be the sec chair and isn’t.
Necessarily a fan of crypto, not by a long stretch but he’s, a serious thinker on the future of payment, subject together with yellen as secretary. This might be the most experienced bitcoin administration in the digital monies history. Again, yellen was in power at the critical times in bitcoin’s growth. She witnessed many frothy markets and might understand how beneficial crypto could be for regular folks in terms of lower fees and more financial freedom. Of course, those could easily be a bug for ellen, not a feature before you go hit that like button and subscribe to the channel and don’t forget to hit the bell icon, so you get notified every time a new video is released. Thank you.