US Treasury Secretary Yellen Addresses Crypto Risks, Calls for Regulation
U.S. Treasury Secretary Janet Yellen, leading the Financial Stability Oversight Council, recently spoke to lawmakers about the risks that cryptocurrencies pose to the U.S. financial system and called for regulations to address these concerns.
Financial Volatility and Crypto Legislation
Yellen highlighted the recent turmoil in the crypto market as evidence of the risks involved and emphasized the need for a regulatory framework that includes oversight of stablecoins and measures to ensure compliance with financial laws.
She stated that rules and regulations should be enforced, and Congress should pass legislation to regulate stablecoins and non-security crypto-assets in the spot market.
Broader Financial Landscape
In addition to addressing crypto challenges, Yellen discussed other systemic risks such as vulnerabilities in real estate sectors, geopolitical conflicts, and technological developments. She emphasized the importance of monitoring these risks to maintain financial stability.
Yellen’s Concerns about Crypto
In a session with the Senate Finance Committee in June 2023, Yellen expressed significant concerns about cryptocurrencies’ role in financial misconduct, particularly terrorist financing. She also pointed out their prevalent use in unlawful transactions and called for measures to curtail their use and prevent money laundering.
Hot Take: US Treasury Secretary Urges Regulation of Cryptocurrencies
U.S. Treasury Secretary Janet Yellen has emphasized the risks posed by cryptocurrencies to the country’s financial system and called for regulatory measures. Yellen highlighted the volatility and rapid growth of crypto assets as potential sources of market instability. She stressed the need for regulations that oversee stablecoins, ensure compliance with financial laws, and regulate non-security crypto-assets in the spot market. Additionally, Yellen discussed broader systemic risks and the importance of monitoring vulnerabilities in real estate sectors, geopolitical conflicts, and technological advancements. Her concerns about cryptocurrencies’ involvement in financial misconduct, including terrorist financing, further underline the necessity for measures to curtail their use and prevent money laundering.
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