 to enhance its regulatory scrutiny of cryptocurrencies and stablecoins.){kind=link}
7th December 2024 – (Washington) U.S. Treasury Secretary Janet Yellen has urged the Financial Stability Oversight Council (FSOC) to enhance its regulatory scrutiny of cryptocurrencies and stablecoins. This request came during the council’s final meeting of the year, where Yellen expressed concerns about the ongoing vulnerabilities facing the U.S. financial system, despite positive economic indicators such as cooling inflation and low unemployment rates.
Yellen stressed the importance of establishing comprehensive federal prudential frameworks for stablecoin issuers, alongside legislative measures to mitigate the risks associated with crypto assets. She highlighted the necessity of developing cross-agency expertise to assess and monitor the potential systemic risks posed by artificial intelligence within the financial services sector, while also fostering innovation.