Janet Yellen calls for federal regulation of stablecoin issuers and wallet providers

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Janet Yellen

7th February 2024 – (Washington) U.S. Treasury Secretary Janet Yellen emphasised the need for Congress to establish a federal regulatory authority to oversee stablecoin issuers and wallet providers, aiming to address potential gaps in consumer protection and maintain financial stability. Yellen made these remarks during a hearing held by the U.S. House of Representatives Financial Services Committee on Tuesday.

Yellen highlighted that both the Financial Stability Oversight Council and the President’s Working Group on Financial Markets have identified stablecoins and the spot market for non-securities crypto-assets as areas that require comprehensive regulatory oversight. The emergence and widespread adoption of stablecoins have raised concerns regarding their potential impact on the financial system and the protection of consumers.