Janet Yellen, the new Treasury Secretary of the Biden administration, seems intent on resuming the offensive against the Bitcoin and digital assets.
If the hostilities had already been opened during the parliamentary hearing on his appointment, in the following days Yellen herself had tried to smooth out some rough edges of her speech, recognizing the usefulness of financial innovation. Conciliatory tones which, however, give way again to a more rigid attitude in these hours. Which seems destined to reopen the hostilities between politics and the cryptographic world, not very willing to be blamed at a time when traditional finance is showing its worst side.
The statements of Janet Yellen
Bitcoin is a speculative asset. This is the concise and lapidary definition given by Janet Yellen to the cryptographic icon. He did so during an interview granted Thursday to the broadcaster CNBC. He added that he considers it a priority to briefly give a special regulation regarding digital assets, aimed at protecting investors and preventing digital money from being used by more or less organized crime for their activities.
A speech destined to rekindle the controversy, especially in consideration of some sensational omissions by the treasury secretary. In addition, there is an all too conciliatory attitude towards large financial groups which, even in recent events, have shown a not exactly exciting face.
Markets are working well according to Yellen
In the same interview, in fact, Yellen stated that the recent affair of pump and dump su GameStop has demonstrated good market efficiency.
An opinion that seems to clash with the concern that emerged in public opinion after the events that saw the protagonistexchange Robinhood. Which limited its clientele's trading on GME shares at a time when the coordinated action of small investors was sinking Melvin Capital. That is the hedge fund which is in practice the largest investor of the exchange platform. Revealing a clear case of conflict of interest to the detriment of the ox park (the small investors) of Wall Street. A story that would not disfigure in one of the many films periodically reserved by Hollywood for big finance. So much so that it has pushed some production companies to put fiction on the subject in a quote.
The controversy could soon rise in tone
Yellen's statements are nothing new. And they had already been refuted by some analysts, who had not had too much difficulty in highlighting, for example, the fact that it is cash that is the primary means of tax evasion and other criminal activities. Without anyone thinking of stating the need for greater regulation.
His latest utterances, however, seem destined to rekindle the controversy especially in consideration of the moment in which they arrive. That is in the midst of a moment in which Wall Street is prey to sensational movements. Like those that continue to affect the GME title, but not only. To say that the markets are functioning at such a troubled time seemed to many observers a reckless exercise. Also because what happened in the past days is now the subject of collective lawsuits in various parts of the country. And the attention on the part of regulatory bodies (SEC) and politics, which seem far from well disposed towards the obvious phenomena of market disruption that have occurred.