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Reshuffle looms as finance minister leaves soon – will it affect crypto?
Biden’s administrative team is about to be reshuffled as Treasury Secretary Janet Yellen leaves after the midterms, the reshuffle could mean a positive turn for Crypto since Yellen was an anti-crypto advocate. Yellen has previously made several negative comments and advised against crypto adoption.
Although no one knows why Yellen is leaving, she received several criticisms due to her poor analysis of economic situations. The United States is currently experiencing sky-high inflation levels.
After the interim period, Janet’s position will need to be replaced, and the Senate confirms potential candidates for cabinet positions. First, however, the results of the Nov. 18 midterm elections would determine which political party would control the Senate.
Since President Biden is from the Democratic Party, the transition could be difficult if the Republican Party controls the Senate. Nevertheless, the Democratic Party currently leads the Senate.
Speculation has already begun about who will fill Yellen’s position after she leaves. Reports from Axios suggest that Gins Raimondo, the Commerce Secretary, and Lael Brainard, the Federal Reserve, could be Yellen’s potential successors. However, there is no choice yet and this rumor has yet to be confirmed.
Impact of Finance Minister on Crypto
The Office of Foreign Assets Control (OFAC) of the US Treasury Department monitors potential crypto adoption. For example, OFAC recently censured Tornado Cash, a currency mixing service, which suppresses its operations in the United States via sanctions. Tornado Cash is said to have been involved in money laundering and illegal money transfer activities.
Janet Yellen as, a Treasury secretary, is demanding some control over decisions regarding crypto regulations and adoptions. Yellen advised against using BTC for pension savings. She also listed several risks of cryptocurrency and blockchain technology. During the bear market, Yellen said that crypto needs rules after the Terra-LUNA crash.
Outlook for US macroeconomic conditions and crypto market response
Yellen plays a crucial role in the US macro economy as Treasury Secretary. But in the current macroeconomic challenges, Yellen made comments that made people displease her.
As the Federal Reserve tightened, capital market participants experienced countless struggles due to the encroaching recession. Janet Yellen said she sees no instability in market functions, which makes people doubt her knowledge as an economist.
Nevertheless, on the macroeconomic conditions, several cryptocurrencies are crashing to their lowest levels due to poor market conditions. For example, bitcoin price fell below $20,000 in the last 24 hours, while ETH is trading at $1,319.
As 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 of a rise in unemployment if they continue with their aggressive stance.
