Regulatory pressure for the crypto market continues to increase from different arms. The SEC is waging a relentless war against many altcoins, claiming they are securities. In addition, there is also regulatory pressure for altcoins such as USDT, which are perceived to be less risky. Finally, US Treasury Secretary Janet Yellen said that the US needs better stablecoin regulation.
Janet Yellen: There needs to be federal oversight for these altcoins!
The government’s financial risk watchdogs want there to be minimal federal oversight of stablecoin issuers, U.S. Treasury Secretary Janet Yellen told lawmakers on Tuesday. It’s a system that sets universal compliance standards beyond what states like New York and Texas currently implement.
Janet Yellen testified before the House Financial Services Committee. Yellen stated that the council of financial regulators she leads “believes that it is critical to have a federal regulatory basis that applies to all states, and that a federal regulator should have the ability to decide whether a stablecoin issuer should be barred from issuing such an asset.”
Stablecoin regulations are the main sticking point
cryptokoin.comAs you follow from , regulatory pressure on these altcoins has increased recently. Regulation of stablecoins has been a major sticking point for US legislation in the crypto space. Republicans are fighting to give state regulators more authority. Democratic lawmakers and Yellen’s Treasury Department held the line on federal authority. Despite this disagreement, that committee had previously approved a stablecoin bill with the support of some Democrats. But that effort awaits a vote on the House floor.
Committee Chairman Patrick McHenry (R.N.C.) is leading this legislative initiative. He used his opening question to Yellen on Tuesday to raise the issue during a session focusing on the work of the Financial Stability Oversight Council, which consists of the heads of various U.S. financial institutions.
Janet Yellen: I need to discuss this with the president!
Yellen also touched on the U.S. Securities and Exchange Commission’s proposal to further restrict how investment firms store their clients’ assets, including crypto assets. The agency wants a broader range of client assets to be held in “qualified custodians.” It plans to complete a rule in this direction this year. It has also drawn criticism from bankers, some lawmakers and even other regulators about its potential impact.
“We have some concerns about how it will affect banks,” Yellen said at the hearing. “I need to discuss this with the president,” he said. FSOC also explained what will happen if lawmakers fail to introduce new regulations for digital assets. Accordingly, the council will have to act on its own. That’s why he warned Congress and the crypto industry. It’s possible this could involve imposing Federal Reserve oversight on aspects of the industry.
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