Summary
In her prepared testimony, the Chair of the U.S. Federal Reserve, Janet Yellen, highlighted the council’s focus on digital assets and the associated risks. These risks include runs on crypto-asset platforms and stablecoins, vulnerabilities arising from the volatility of crypto-asset prices, and the increasing number of platforms operating outside of or in violation of laws and regulations.
Key Points
1. The council is primarily concerned with digital assets and the associated risks, including potential runs on crypto-asset platforms and stablecoins.
2. One of the major concerns is the vulnerability caused by crypto-asset price volatility, which can have significant implications for the financial stability of individuals and markets.
3. The council is also focused on addressing the proliferation of platforms that operate outside or are not in compliance with relevant laws and regulations, as they pose a threat to the overall integrity of the financial system.