Symphony Of Stability: Us Treasury Secretary Harmonizes Call For Federal Regulator To Orchestrate Stablecoins

By

During a House Financial Services Committee hearing, Treasury Secretary Janet Yellen emphasized the need for a unified regulatory approach to stablecoins across all U.S. states.

Janet Yellen, U.S. Treasury Secretary, urged Congress to address regulatory gaps in the digital asset space, citing potential risks to investors and financial stability.

At a Financial Stability Oversight Council annual report hearing on Feb. 6, Treasury Secretary Janet Yellen highlighted the importance of regulation in areas like stablecoins, emphasizing the need to protect wallet holders and oversee stablecoin issuers.

“There are many areas with respect to digital assets where we do have clear regulatory authority, but we’ve identified some gaps where, for consumer investor protection and to address financial stability risk, it would be useful for Congress to take action to fill those gaps,” said Yellen.

U.S. Treasury Secretary Janet Yellen speaks at a House Financial Services Committee hearing on Feb. 6. Source: YouTube

The Treasury Secretary emphasized the lack of supervisory authority by the Commodity Futures Trading Commission (CFTC) over spot market commodities like Bitcoin. Yellen expressed concern over stablecoins, advocating for a uniform federal regulatory standard across all U.S. states instead of the existing state-by-state framework.

A federal regulator should have the ability to decide if a stablecoin issuer should be barred from issuing such an asset.

Yellen reiterated her call for a comprehensive regulatory framework for cryptocurrencies in the US, echoing her previous statements. The House Financial Services Committee passed the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act in July 2023, awaiting a full House vote.

McHenry, who has chaired the House Financial Services Committee since January 2023, announced he won’t seek reelection in 2025. The potential impact on digital asset regulation remains uncertain.

READ MORE NEWS ON

Bitcoin | Inflation Deflation Deflation Inflation Cryptocurrencies

We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.

ABOUT THE AUTHOR

Tabitha Nyamburah
Journalist

Be the first to know about crypto news every day

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.