Treasury Secretary Janet Yellen Urges Congress to Address Gaps in Digital Asset Regulation
Print
Modified on: Wed, 7 Feb, 2024 at 12:49 AM
In a recent hearing of the House Financial Services Committee, United States Secretary of the Treasury Janet Yellen emphasized the need for Congress to address regulatory gaps in the digital asset space. Yellen highlighted concerns related to stablecoins and the lack of a unified regulatory approach, calling for a federal regulatory framework applicable to all U.S. states. The Treasury Secretary emphasized the importance of consumer and investor protection, urging Congress to take action to fill existing regulatory voids in the crypto sector. Yellen's remarks underscore the ongoing efforts to establish a comprehensive regulatory framework for cryptocurrencies in the United States.
In a recent hearing before the House Financial Services Committee, United States Secretary of the Treasury Janet Yellen urged Congress to address regulatory gaps in the digital asset landscape, emphasizing the need for a comprehensive and unified regulatory approach. The hearing, focused on the Financial Stability Oversight Council's annual report, provided a platform for Yellen to express her views on pending legislation related to stablecoins and regulatory clarity in the cryptocurrency space.
House Financial Services Committee chair Patrick McHenry queried Yellen on her perspective regarding pending legislation aimed at addressing stablecoins and enhancing regulatory clarity for the broader crypto industry. Yellen acknowledged the existence of clear regulatory authority in certain areas related to digital assets. However, she pointed out identified gaps that, in her view, pose risks to investors and the overall financial system. The Treasury Secretary stressed the critical nature of regulation, particularly in protecting wallet holders and overseeing stablecoin issuers.
Yellen specifically cited the Commodity Futures Trading Commission (CFTC), noting its lack of supervisory regulatory authority over spot market commodities linked to Bitcoin. She highlighted the risks posed by stablecoins to the U.S. financial system and advocated for a federal regulatory floor, emphasizing the need for a unified approach applicable to all U.S. states. Yellen proposed that a federal regulator should have the authority to decide whether a stablecoin issuer should be allowed to issue such assets.
The Treasury Secretary's remarks echoed her previous public statements calling for a robust regulatory framework to govern cryptocurrencies in the United States. Notably, the House Financial Services Committee had passed the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act in July 2023. Both bills are awaiting a full floor vote in the House as part of ongoing efforts to establish comprehensive regulations for the crypto industry.
Representative McHenry, who has chaired the House Financial Services Committee since January 2023, is expected to leave office in 2025 after announcing that he does not plan to seek reelection. The potential impact of his departure on digital asset regulation remains uncertain, adding an additional layer of complexity to the evolving regulatory landscape in the United States.
(TURNER WRIGHT, COINTELEGRAPH, 2024)
Did you find it helpful?
Yes
No
Send feedback Sorry we couldn't be helpful. Help us improve this article with your feedback.