The world of digital currency is having a busy week, and things are ramping up on Thursday. Particularly, crypto policy talk is increasing, due in large part to the U.S. Treasury Secretary, Janet Yellen. Yellen is preparing to talk today about crypto regulations, and investors hope to hear some insight into coming crypto infrastructure. So, what might this Janet Yellen crypto speech entail?
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In the last few weeks, investors have been pleased to see Janet Yellen coming around on cryptocurrency. Of course, Yellen has long been a foe to the industry. In early 2021, Yellen was one of those leading the charge against Bitcoin (BTC-USD), slamming the energy consumption of mining and transactions.
And as the year progressed onward, crypto fanatics had voiced a deep displeasure with Yellen’s handling of the industry and her repeated bashes against digital money. Around this time, it looked likely that the U.S. government would be regulating cryptocurrency sooner rather than later. As a result, this relationship between Yellen and the crypto industry has become more strained — that is, until recently.
President Joe Biden’s crypto executive order has seemingly shifted Yellen’s views on the asset class. The order tasks Yellen with leading a research group; the group will report later this year on their deep dive into cryptocurrency, blockchain technology and stablecoins. Policymakers will use the data to drive their own crypto regulations.
In the weeks since Biden’s executive order, investors have borne witness to a change in Yellen’s previous views of crypto. Investors are hoping these new feelings translate in the coming Janet Yellen crypto speech.
Janet Yellen Crypto Speech: Will the Treasury Secretary Continue Warming Up to Crypto?
Yellen’s first major change in tone over cryptocurrency came in late March. In an interview, she defended digital money innovation. “There are benefits from crypto and we recognize innovation in the payment systems can be a healthy thing,” she said.
This attitude shift could certainly be attributed to Yellen’s increasing exposure to crypto through her role in the executive order. Crypto fans are hoping that although regulations will be coming, a change in attitude by the secretary could lead to less stringent policies than previously anticipated. And today, investors might get a second taste of Janet Yellen bullishness as she delivers a speech on crypto.
This morning, Yellen will be speaking at American University on the topic of cryptocurrency regulation. The speech will be her first on the subject. It will cover ways in which regulation seeks to foster innovation while keeping investors safe.
Of the many comments investors are expecting out of Yellen, perhaps the most widely anticipated is on how crypto regulation should mirror that of the traditional market. Prepared remarks for the speech indicate that she will argue that, “digital assets may be new, but many of the issues they present are not.”
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
