US Treasury Secretary Janet Yellen warned about the potential dangers the cryptocurrency industry poses to the financial system.
US Treasury Secretary Janet Yellen is set to caution Congress about the potential risks posed by the cryptocurrency industry to the financial system. Her concerns encompass the risks associated with stablecoins, activities on crypto platforms, and price volatility.
Treasury Secretary Janet Yellen underscores risks associated with cryptocurrencies in Congressional testimony.
Yellen is scheduled to address the House Financial Services Committee regarding the recent endeavors of the Financial Stability Oversight Council (FSOC), comprising the heads of US financial institutions under her leadership.
In efforts to avert future financial crises, the FSOC has been closely monitoring cryptocurrency risks in recent years, prioritizing them among the categories of potential concern.
“In prepared testimony, Yellen stated, ‘The Council is concentrating on digital assets and associated risks, including transactions on cryptoasset platforms and stablecoins, potential vulnerabilities stemming from cryptoasset price fluctuations, and the proliferation of platforms that operate outside or fail to comply with relevant laws and regulations,'”
Yellen further reiterated her dedication to collaborating with Congress on cryptocurrency legislation. Stressing the necessity of enforcing existing rules and regulations, she urged Congress to enact legislation that addresses the regulation of stablecoins and the spot market for non-securitized crypto assets.
As the cryptocurrency industry advances, Yellen’s remarks emphasize the critical role of regulatory supervision in safeguarding the stability and integrity of the financial system.
