US Treasury Secretary Janet Yellen is preparing to warn Congress about the potential dangers the crypto industry poses to the financial system. Their concerns include the dangers of stablecoins, work on crypto platforms, and volatile prices.
Treasury Secretary Janet Yellen Highlights Crypto Risks in Congressional Testimony
Yellen will appear before the House Financial Services Committee to discuss the latest work of the Financial Stability Oversight Council (FSOC), which consists of the heads of US financial institutions she leads.
Aiming to prevent the next financial crisis, the FSOC has been paying special attention to crypto risks in recent years, listing them at the top of categories of potential concern.
“The Council is focused on digital assets and related risks, such as transactions on cryptoasset platforms and stablecoins, potential vulnerabilities arising from cryptoasset price fluctuations, and the proliferation of platforms that fall outside or do not comply with applicable laws and regulations,” Yellen said in prepared testimony.
Yellen also expressed her commitment to working with Congress on crypto legislation. Emphasizing the need to implement the rules and regulations in force, Yellen called on Congress to adopt legislation that provides for the regulation of stablecoins and the spot market for non-securitized crypto assets.
As the crypto industry continues to evolve, Yellen's statement underscores the importance of regulatory oversight in ensuring the stability and integrity of the financial system.
*This is not investment advice.