Yellen Urges Congress to Regulate Stablecoins
Yellen’s Call for Regulation
U.S. Treasury Secretary Janet Yellen emphasized the need for Congress to grant federal authority to regulate stablecoin issuers and wallet providers. She highlighted the necessity of closing gaps in consumer protection and financial stability protections.
Identified Areas for Regulation
Yellen, speaking at a U.S. House of Representatives Financial Services Committee hearing, pointed out that the Financial Stability Oversight Council and the President’s Working Group on Financial Markets have identified stablecoins and the spot market for crypto-assets as areas requiring formal regulatory authority. This move aims to address the current lack of regulation in these areas.
It is crucial for regulators to keep up with the rapid evolution of financial markets, especially in the rapidly expanding cryptocurrency space. By ensuring appropriate oversight and regulation, the government can help protect consumers and maintain financial stability.
