President Biden’s bank regulator pick expresses concern over bitcoin in confirmation hearing

Yahoo Finance’s Jennifer Schonberger details how President Biden’s nominee to be the Comptroller of the Currency, Saule Omarova, expressed concerns on bitcoin during her confirmation hearing.

Video Transcript

JULIE HYMAN: First there's the regulatory backdrop for cryptocurrencies, or lack thereof I suppose as well. The latest focus regarding that has to do with President Biden's nominee to head the Office of the Comptroller of the Currency, who has some views on cryptocurrencies. Our Jennifer Schonberger is covering that angle of things. And there was a hearing for this nominee yesterday.

JENNIFER SCHONBERGER: Good Friday morning Julie, that's right. President Biden's nominee for one of the top banking regulators in this country, faced a mix of skepticism and agreement from US senators on her views on digital assets, during her confirmation hearing on Thursday.

Saule Omarova, who's being vetted currently for the Comptroller of the Currency, which oversees the majority of the nation's banks, is concerned that large tech companies could control the payment infrastructure in the US, if private digital currencies are allowed to thrive, which could potentially displace the value of the US dollar.

While Democratic Senator Jack Reed agreed with her view on big tech, Republican Senator Cynthia Lummis, said she's struggling with Omarova's views, saying, quote, "that she is skeptical." Take a listen to what she asked Omarova, about whether Bitcoin poses a threat to national security.

SAULE OMAROVA: I'm not an expert on Bitcoin, but I would worry if all of our financial transactions were up to some blockchain system where you know, various actors who might actually be located in other countries, not particularly friendly to us, control the functioning of that system. That would be my worry.

JENNIFER SCHONBERGER: And while she worries about the longevity of private digital currencies, she says she is in favor of a central bank digital currency, over privately issued stablecoins, because she says that would ensure access for everyone, since it would be issued by the government.

Now unclear whether Omarova could get confirmed by the Senate. While she faced a slew of firing questions from Republicans, two Democratic senators, senators Tester and Warner also expressed skepticism and concern. And in a Senate that's divided very closely, 50-50 Republican and Democratic, unclear whether she could get confirmed. Julie?

JULIE HYMAN: Thanks so much Jen, appreciate it. Jen Schonberger on whether we'll see that person for Saule Omarova, end up heading up the OC--