Treasury Secretary Janet Yellen Highlights Concerns About Crypto
U.S. Treasury Secretary Janet Yellen addressed the House Committee on Financial Services, discussing the ongoing areas of focus for the Financial Stability Oversight Council (FSOC) in 2024. The FSOC, a Treasury office, aims to identify emerging threats to US financial stability.
In her speech, Yellen expressed concerns about crypto and stablecoins, highlighting their potential risks to the financial system due to the lack of regulation in this asset class. She emphasized the need for enforcing applicable rules and regulations and called on Congress to pass legislation for regulating stablecoins and the spot market for non-securities crypto-assets.
Yellen also mentioned that the FSOC plans to assess risks from the banking sector and nonbank financial institutions. The council supports member agencies’ efforts to review capital measures, improve resolvability at large banks, and address risks related to liquidity mismatch and leverage in nonbank financial institutions.
Hot Take: Yellen Urges Congressional Action on Crypto Regulation
U.S. Treasury Secretary Janet Yellen has voiced concerns about the potential risks posed by crypto assets and stablecoins to the financial system. In her testimony before Congress, she highlighted the need for regulation in this largely unregulated asset class. Yellen called on Congress to pass legislation for regulating stablecoins and the spot market for non-securities crypto-assets.
This marks a significant move by a top government official towards addressing the regulatory challenges surrounding cryptocurrencies. It indicates that regulatory scrutiny is intensifying and may lead to increased oversight of digital assets in the future.
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