Treasury Secretary Janet Yellen Calls for Legislation Amid Cryptocurrency Risks
Ahead of a congressional hearing on Tuesday, U.S. Treasury Secretary Janet Yellen testified that she would highlight the risks associated with cryptocurrency platforms and stablecoins and urge Congress to pass legislation.
Yellen, who leads the Financial Stability Oversight Council, a group of federal financial regulators that monitors the stability of the financial system, is scheduled to go before the House Financial Services Committee on Tuesday to discuss the committee’s latest annual report.
Previously referred to the now-bankrupt FTX as “Lehman The “moment on cryptocurrencies,” which references the collapse of Lehman Brothers, the financial firm that precipitated the 2008 financial crisis, will signal to lawmakers that the FSOC is still studying the risks of cryptocurrencies.
“The committee is focused on digital assets and their associated risks, such as the implementation of crypto-asset platforms and stablecoins, potential vulnerabilities due to crypto-asset price volatility, and the proliferation of platforms that do not or do not comply with applicable laws and regulations. “Yellen spoke from a prepared position. confession On Monday.
Congress must pass legislation and enforce applicable rules, Yellen added. Lawmakers are preparing bills, including one focused on stablecoins and another focused on market structures more broadly. An anti-money laundering bill was also proposed.
FSOC is a digital asset and warned In its 2023 annual report released in December, it outlined the price volatility of cryptocurrencies and the interconnectedness within the industry.
SAB 121
The committee will also discuss options for appealing the Securities and Exchange Commission’s staff bulletin at Tuesday’s hearing. The bill disapproving the bulletin is part of the committee memorandum for hearing.
The notice, issued in March 2022, requires companies that store cryptocurrency to record customers’ cryptocurrency holdings as liabilities on their balance sheets. SAB 121 received backlash from cryptocurrency advocates.illogical.” Others said it should come in the form of formal rules. SEC Chairman Gary Gensler defended the bulletin in bankruptcy court, citing concerns about customers.
Sen. Cynthia Lummis (R-Wyo.), Rep. Mike Flood (R-Neb.) and Wiley Nickel (D-N.C.). introduction joint solve I was going to block that bulletin board last week. Nickel and Flood are both members of the House Financial Services Committee.
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