U.S. Treasury Secretary Janet Yellen has announced she will step down at the end of President Joe Biden's term in January, a move that has sparked optimism in the cryptocurrency community about the potential for more favorable policies.

During her tenure, Yellen took a cautious stance on digital currencies, advocating for stricter oversight. In April 2022, she remarked, “We really need a regulatory framework to guard against the risks,” aligning with the broader federal push for comprehensive cryptocurrency regulation.

Her concerns about the industry were highlighted after the collapse of a major cryptocurrency exchange in 2022, when she stated, “This underscores the need for more effective oversight.”

“No doubt ... Yellen's departure might initiate a shift in policy in the US that could favor crypto growth and more Bitcoin adoption, crypto advocate Ajax wrote in a Nov. 24 social media post on X.  “I hope and am sure of a more crypto-friendly environment in the US soon!”

Bitcoin's value surged over 32% following the 2024 U.S. presidential election, reaching a record high of more than $98,000. Yellen had previously criticized Bitcoin's energy consumption, describing it in February 2021 as “an extremely inefficient way to conduct transactions” and highlighting its significant environmental impact.

Janet Yellen, an economist, made history as the first female U.S. Treasury Secretary, serving from January 2021. She was also Chair of the Federal Reserve from 2014 to 2018.