US Treasury Secretary Janet Yellen warned about the potential risks that cryptocurrencies may pose to the financial system.
The preliminary presentation of the speech that US Treasury Secretary Janet Yellen will give before the House of Representatives Financial Services Committee was shared with the public. In this short shared episode, Yellen’s Warnings against the cryptocurrency industry drew attention.
Yellen stated that the Financial Stability Oversight Council (FSOC) continues its work on this issue, especially stablecoins the risk it may create in the financial system and Cryptocurrency platforms operating without complying with the law He emphasized the need to be careful.
Yellen reminded that legislation is necessary to comprehensively regulate the sector and prevent rule violations:
The council reviews transactions on cryptocurrencies, cryptocurrency platforms and stablecoins. Work has been accelerated on potential vulnerabilities arising from cryptocurrency price fluctuations and related risks, such as the proliferation of platforms that fall outside or do not comply with applicable laws and regulations. Applicable rules and regulations should be implemented, and Congress should enact legislation to ensure regulation of stablecoins and the spot market for non-securitized cryptocurrencies.
Details of Janet Yellen’s speech and details about FSOC’s current work 6 February The day will be shared.