Janet Yellen Calls For Crypto Regulation Make US Lawmakers Question Urgent Law

Key Points:

• U.S. Treasury Secretary Janet Yellen calls for crypto legislation to address systemic risks beyond existing laws.
• Yellen emphasizes the need for federal oversight of stablecoin issuers, advocating for a regulatory framework applicable nationwide.

U.S. Treasury Secretary Janet Yellen has urged Congress to pass new legislation tailored specifically for cryptocurrencies to address systemic risks not covered by existing laws.

Yellen Calls For Crypto Legislation Amid Systemic Risk Concerns

Speaking before the House Financial Services Committee, Yellen emphasized the need for federal oversight of stablecoin issuers, advocating for a minimum level of regulation applicable nationwide.

Yellen, who leads the council of financial regulators, emphasized the importance of establishing a federal regulatory framework to supplement existing state-level regulations in states like New York and Texas. Yellen calls for crypto regulation come amidst a longstanding debate between Republicans pushing for state authority and Democrats, supported by the Treasury Department, advocating for federal control.

During the hearing, lawmakers raised concerns about proposed capital standards for banks and the potential economic impacts of such regulations. Both Republican and Democratic members expressed reservations about the current form of the Basel III endgame implementation, with many fearing it could negatively impact credit availability and weaken the economy.

Lawmakers Express Reservations on Banking Regulations as Yellen Emphasizes Public Feedback

Yellen acknowledged the concerns raised by lawmakers and stated that banking regulators are considering public comments on the proposed regulations. She emphasized the importance of ensuring that any regulatory measures do not unduly restrict access to credit.

Yellen calls for crypto regulation underscore the ongoing efforts to establish comprehensive regulatory frameworks for the cryptocurrency market, highlighting the challenges and debates surrounding the balance between state and federal oversight and the potential economic implications of such regulations.

Additionally, Yellen reiterated the Financial Stability Oversight Council’s stance on the need for federal regulatory standards for stablecoins and the protection of wallet holders within the cryptocurrency ecosystem.