U.S. Treasury Secretary Janet Yellen called for swift Congressional action to address "gaps" in digital asset regulation during a House Financial Services Committee hearing on February 6.
U.S. Treasury Secretary Janet Yellen called for swift Congressional action to address "gaps" in digital asset regulation during a House Financial Services Committee hearing on February 6. She emphasized the need for clear rules, particularly regarding stablecoins, to protect consumers and mitigate financial stability risks.
Committee Chair Patrick McHenry quizzed Yellen on her views on pending legislation aimed at regulating stablecoins and clarifying the overall crypto landscape. While acknowledging existing regulations in some areas, Yellen stressed the crucial need for Congressional intervention in others.
"We've identified areas where, for consumer protection and financial stability, it's crucial for Congress to fill regulatory gaps," she stated.
Yellen specifically voiced concerns over the lack of oversight for the Bitcoin spot market and the potential systemic risks posed by stablecoins. She advocated for a "federal regulatory floor" for stablecoins across all states, instead of the current patchwork approach. "A federal regulator should have the ability to shut down risky stablecoin issuers," she asserted.
These remarks align with Yellen's previous calls for a comprehensive regulatory framework for cryptocurrencies. Notably, the House Financial Services Committee already passed the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act in July 2023, but await a full House vote.
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