With Treasury Secretary Retiring Soon, Reshuffling Is Coming – Will It Affect Crypto?

Biden’s management team is about to be shuffled as Treasury secretary. Janet Yellen to resign after midterm elections. Yellen has been an anti-crypto proponent, so the shuffle could mean a positive turnaround for crypto. Yellen has previously made some negative comments and advised against adopting cryptography.

No one knows why Yellen is stepping down, but she has received some criticism for her poor analysis of her financial situation. The US is currently experiencing a spike in inflation.

After the midterm elections, Janet’s office will need to be replaced, and the Senate will confirm potential candidates for cabinet office. But first, the results of the November 18 midterm elections will determine which party controls the Senate.

With President Biden coming from a Democratic background, a reorganization could prove difficult if Republicans control the Senate. Nevertheless, Democrats now lead the Senate.

Speculation has already begun as to who will fill Yellen’s position after she leaves.Axios reports that Commerce Secretary Gins Raimondo and Federal Reserve Board member Lael Brainard are potential successors to Yellen. There is a nature. However, no selection has been made yet and this rumor has yet to be confirmed.

Treasury Secretary Impact on Crypto

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) governs the potential adoption of cryptocurrencies. Tornado Cash was allegedly involved in money laundering and illegal fund transfer activities.

Treasury Secretary Janet Yellen has some control over decisions regarding cryptocurrency regulation and adoption. Yellen advised against using BTC for her retirement savings. She also cited some risks of cryptocurrencies and blockchain technology. During the bear market, Yellen said cryptocurrencies needed regulation after Terra-LUNA crashed.

US macroeconomic outlook and response to the crypto market

As Secretary of the Treasury, Ms. Yellen plays a key role in the US macro economy. But in the current macroeconomic challenges, Yellen made a statement that made people uncomfortable with her.

As the Federal Reserve tightened, capital market participants experienced countless hardships as the recession rolled in. Janet Yellen said she sees no volatility in market functioning as people question her knowledge as an economist.

Still, in macroeconomic conditions, some cryptocurrencies have crashed to all-time lows due to poor market conditions. For example, Bitcoin’s price has fallen below $20,000 in the last 24 hours, while ETH is trading at $1,319.

As the cryptocurrency market continues to struggle, the Federal Reserve remains aggressive on its inflation containment plan. The Federal Reserve thinks current interest rates are still low.

Susan Collins of the Boston Federal Reserve has warned that unemployment will rise if the Fed remains aggressive.

Featured image from Pixabay, Chart: TradingView.com