Judy Shelton has joined the US Treasury Department as an adviser to Secretary Scott Bessent, with a focus on monetary policy and assessing China’s financial conditions. Shelton’s appointment does not signal support for Bitcoin or XRP. For crypto markets, the more relevant question is how her views on the dollar, the yuan and US-China financial ties could shape policy expectations.
Shelton’s remit includes China’s financial conditions
The Treasury Department announced Shelton’s appointment on October 9. Her responsibilities include monetary policy, with particular attention to China’s financial conditions. Her research has focused largely on monetary theory: she published a book on the collapse of the Soviet economy in 1989 and wrote about creating a unified international monetary system in 1994.
The appointment had been reported earlier. The New York Times disclosed it on September 16, nearly three weeks before the Treasury announcement. Shelton was previously nominated to the Federal Reserve Board in 2019, but the Senate blocked her nomination. Her influence on monetary policy discussions at Treasury remains to be seen. Bitcoin showed no clear reaction tied to Shelton when news of the appointment emerged on either occasion.
Gold-backed dollar views do not amount to crypto support
Shelton has long argued that gold should support the dollar, but she has not proposed making Bitcoin a reserve currency. She has said cryptocurrencies are not reliable stores of value once converted back into fiat currency. She has also pointed to potential tax costs when crypto is used for purchases, since transactions can trigger capital gains tax.
At the same time, Shelton has expressed openness to competition among forms of money. In a 2018 article for the Cato Institute, she wrote that virtual currencies could circulate alongside government-issued money. At a Yahoo Finance conference in November 2024, she said decentralized finance reflected declining trust in government management of money and welcomed currencies capable of challenging the dollar’s dominance. Those comments address competition within the monetary system; they are not an endorsement of Bitcoin or any specific token.
The yuan and dollar offer a possible route to crypto markets
Shelton’s China-related responsibilities are one of the more direct links between her appointment and digital assets. In August 2019, the yuan weakened past 7 per dollar, after which the US Treasury designated China a “currency manipulator.” Bitcoin rose 8% that day while US stocks fell about 3%. However, Bitcoin traded at a discount in China at the time, leaving the role of safe-haven demand in the rally uncertain.
Moves in the yuan and changes in US-China relations could affect crypto through the dollar. Policies that lead to a faster yuan appreciation could weigh on the dollar. Historically, a weaker dollar has tended to provide modest support for Bitcoin, though it does not guarantee a price increase. Heightened US-China tensions, by contrast, could prompt investors to seek safer assets. In February 2025, Bitcoin fell below $80,000 as uncertainty over tariffs increased, despite the US government’s relatively supportive stance toward the crypto industry.
Shelton’s appointment has so far shown no direct effect on Bitcoin or XRP. The key developments to watch are her role in assessing China’s monetary conditions and how any related policy shifts influence expectations for the dollar and US-China relations.