Biden’s administrative team is about to get shuffled as the Treasury Secretary, Janet Yellen leaves after midterm, the shuffle might mean a positive turn for Crypto since Yellen was an anti-crypto advocate. Yellen previously made several negative comments and advised against crypto adoptions.
Although no one knows why Yellen is leaving, she received several criticisms because of her poor analysis of financial situations. The United States is presently experiencing soaring inflation levels.
After the midterms, Janet’s position would need replacement, and the Senate confirms potential candidates for cabinet positions. First, however, the results of the midterm elections on November 18 would determine the political party that would control the Senate.
Since President Biden is from the Democratic Party, the reshuffle might prove difficult if Republican Party controls the Senate. Nevertheless, the Democratic Party is currently leading the Senate.
Speculations have already begun regarding who would fill Yellen’s position after she leaves. Reports from Axios suggest that Gins Raimondo, the Commerce Secretary, and Lael Brainard, the Federal Reserve, might be Yellen’s potential successors. However, there is no selection yet, and this rumor is not yet confirmed.
Impact Of Treasury Secretary On Crypto
The office of Foreign Assets Control (OFAC) of the United States Treasury controls potential crypto adoptioFor example, the OFAC recently censored Tornado Cash, a currency mixing service, suppressing its operations in the US via Sanctions. Tornado Cash was allegedly involved in money laundering and illegal fund transfer activities.
Janet Yellen as, a Treasury Secretary, exacts some control over decisions regarding crypto regulations and adoptions. Yellen advised against the use of BTC for retirement savings. She also listed several risks of cryptocurrency and blockchain technology. During the bear market, Yellen said crypto needs regulations after the Terra-LUNA crash.
Outlook Of United States Macroeconomic Conditions And Response To Crypto Market
Yellen plays a crucial role in the United States macroeconomics as the Treasury Secretary. However, in the current macroeconomic challenges, Yellen made comments that gained people’s displeasure towards her.
As the Federal Reserve got tightened, capital market participants experienced countless struggles due to the encroaching recession. Janet Yellen said she sees no instability in the market functions, making people doubt her knowledge as an economist.
Still, on the macroeconomic conditions, several cryptocurrencies are crashing down to their all-time lows due to poor market conditions. For example, the bitcoin price fell below $20,000 in the last 24 hours, while ETH trades at $1,319.
While the crypto market continues its struggles, the Federal Reserve remains aggressive in its plans to reduce inflation. The Feds believe the current interest rate is still low.
Susan Collins of the Boston Federal Reserve has warned the Feds about an increase in unemployment if they continue on the aggressive stance.