Summary
Treasury Secretary Janet Yellen has urged lawmakers to create federal regulatory standards for the crypto industry. Yellen expressed concerns about potential risks posed by cryptocurrencies, such as runs on digital asset platforms and price volatility. She highlighted the need for Congress to fill regulatory gaps and called for a federal framework to address risks associated with stablecoins. Yellen’s comments were made during an annual hearing to examine the Financial Stability Oversight Council’s report, which identified digital assets as a risk to financial stability.
Key Points
1. Treasury Secretary Janet Yellen urged lawmakers to take immediate action in creating federal regulatory standards for the crypto industry during her appearance on Capitol Hill.
2. Yellen highlighted the risks posed by crypto, including potential runs on digital asset platforms and vulnerabilities from crypto asset price volatility.
3. Yellen emphasized the need for a federal regulatory framework for stablecoins, stating that a federal regulator should have the authority to determine whether a stablecoin issuer should be allowed to issue such assets.