US Treasury Secretary Yellen Addresses Crypto Risks in Congress Testimony

According to CoinDesk, US Treasury Secretary Janet Yellen is set to inform Congress about the potential hazards the crypto industry poses to the financial system. These risks include stablecoin dangers, runs on crypto platforms, and volatile prices. Yellen will appear before the House Financial Services Committee to discuss the latest work of the Financial Stability Oversight Council (FSOC), a group of US financial agency heads led by the secretary. In recent years, the council has paid special attention to crypto risks, placing them among the top categories of potential concern. Yellen stated in her prepared testimony that the council is focused on digital assets and related risks, such as runs on crypto-asset platforms and stablecoins, potential vulnerabilities from crypto-asset price volatility, and the proliferation of platforms acting outside of or out of compliance with applicable laws and regulations. She also mentioned her intention to continue working with Congress on crypto legislation, emphasizing the need for enforcing applicable rules and regulations, as well as passing legislation to regulate stablecoins and the spot market for crypto-assets that are not securities. While her remarks do not reveal any new interest or initiative, the inclusion of digital assets as one of her key issues keeps the crypto sector in the spotlight of the US government's financial concerns.