Summary
U.S. Treasury Secretary Janet Yellen will testify before Congress and highlight the risks associated with cryptocurrency platforms and stablecoins. She will urge Congress to pass legislation and enforce applicable rules. Yellen will discuss the Financial Stability Oversight Council’s focus on digital assets and their risks, such as runs on crypto platforms and price volatility. The Securities and Exchange Commission’s staff bulletin regarding customer crypto holdings as liabilities on balance sheets will also be discussed during the hearing. Legislation to appeal the bulletin is part of the committee’s agenda.
Key Points
1) U.S. Treasury Secretary Janet Yellen will emphasize the risks associated with crypto platforms and stablecoins, urging Congress to pass legislation.
2) Yellen, as the leader of the Financial Stability Oversight Council, will address the council’s concerns about crypto’s risks, including runs on crypto-asset platforms, price volatility, and non-compliance with regulations.
3) Yellen recommends the enforcement of applicable rules and the passage of legislation, with lawmakers already working on bills focused on stablecoins, market structure, and anti-money laundering.