Speaking to Congress today, Treasury Secretary Janet Yellen has called for Crypto legislation. Specifically, Yellen asked for congressional action to protect citizens from risks associated with digital assets. Talking to lawmakers, Yellen expressed her desire for Federal oversight over stablecoin issuers.
Yellen currently leads the Financial Stability Oversight Council and appears before the House Financial Services Committee today. There, she discussed the latest annual report issued by her council. Subsequently, she did not hold back on her opinion regarding widespread cryptocurrency and stablecoin regulation in the United States.
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Janet Yellen Calls for Congressional Crypto Legislation
As many have expected, digital assets have become a key political talking point in 2024. Indeed, the mainstream adoption of these cryptocurrencies has driven a consistent debate among those on Capitol Hill. Today, the calls for federal regulations of the industry have grown louder.
Specifically, Treasury Secretary Janet Yellen called for Congress to introduce crypto legislation. The former chair of the Federal Reserve chair identified a plethora of risks within the industry, and urged congressional action in addressing these risks through regulatory oversight.
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Yellen stated that her council “believes it’s critical for there to be a federal regulatory floor that would apply to all states and that a federal regulator should have the ability to decide if a stablecoin issuer should be barred from issuing such an asset.”
The presented argument showcases a clear divide in the overall regulatory standing of digital assets. One side has sought to empower state regulators, while others have called for such regulations on the federal level. Conversely, on all sides, legislative action has been taken regarding the digital asset sector.
US Senator Elizabeth Warren has been outspoken about her attack on the industry, and her percpetion of its connection to criminal activity. Alternatively, Committee chairman Patrick McHenry has led a legislative push as a pro-crypto politician. Both sides have shown the importance of legislative development over the digital asset sector in 2024.