Biden’s administration team is about to reshuffle as Treasury Secretary Janet Yellen leaves after half term, the shuffle could mean a positive turn for Crypto, as Yellen was a supporter anti-crypto Yellen previously made several negative comments and advised against crypto adoptions.
Although no one knows why Yellen is leaving, she received several criticisms due to her poor analysis of the financial situation. The United States is currently experiencing rising levels of inflation.
After the mid-terms, Janet’s position should be replaced and the Senate confirms potential candidates for cabinet positions. First, however, the results of the Nov. 18 midterm elections will determine which political party would control the Senate.
Since President Biden is a Democrat, reshuffle could prove difficult if the Republican Party controls the Senate. However, the Democratic Party currently leads the Senate.
Speculation has already begun as to who would fill Yellen’s position after she leaves. Reports from Axios suggest Gins Raimondo, the Commerce Secretary, and Lael Brainard, the Federal Reserve, could be Yellen’s possible successors. However, there is no selection yet, and this rumor is still unconfirmed.
Treasury Secretary’s Impact on Crypto
The US Treasury’s Office of Foreign Assets Control (OFAC) is monitoring potential crypto adoption. For example, OFAC recently censured Tornado Cash, a currency mixing service, by removing its US operations through sanctions. Tornado Cash was allegedly involved in money laundering and illegal fund transfer activities.
Treasury Secretary Janet Yellen is demanding some control over decisions about regulations and crypto adoptions. Yellen advised against using BTC for retirement savings. He also listed several risks of cryptocurrency and blockchain technology. During the bear market, Yellen said crypto needed regulations after the Terra-LUNA crash.
Outlook on US Macroeconomic Conditions and Crypto Market Response
Yellen plays a crucial role in the US macro economy as Treasury Secretary. However, in the current macroeconomic challenges, Yellen made comments that generated people’s distaste for her.
As the Federal Reserve tightened, capital market participants experienced countless struggles due to the encroaching recession. Janet Yellen said she doesn’t see any instability in market functions, which makes people doubt her knowledge as an economist.
Even so, in the macroeconomic conditions, several cryptocurrencies are falling to their all-time lows due to poor market conditions. For example, the price of bitcoin fell below $20,000 in the last 24 hours, while ETH is trading at $1,319.
While the crypto market continues its struggles, the Federal Reserve remains aggressive in its plans to reduce inflation. The Fed believes that the current interest rate is still low.
Susan Collins of the Boston Federal Reserve has warned the feds of a rise in unemployment if they continue with the aggressive stance.
Featured image from Pixabay, Chart: TradingView.com