A warning from U.S. Treasury Secretary Janet Yellen on the dangers of stablecoins and cryptocurrencies to the nation’s financial stability is going to be sent to Congress.
The possible dangers that the cryptocurrency business poses to the financial system will be the topic of U.S. Treasury Secretary Janet Yellen’s Feb. 6 presentation to Congress.
Digital assets, such as stablecoins and the volatility of crypto-asset values, pose unique difficulties and concerns, as outlined in Yellen’s prepared statements that were made public in advance of her presence. These observations cover a wide spectrum of financial system issues.
The difficulties presented by the rapidly growing digital asset industry take up a large chunk of Yellen’s speech.
Platforms that operate outside of existing legal frameworks provide regulatory hurdles, and she names particular dangers such as possible runs on crypto-asset platforms and weaknesses caused by the volatility of crypto-asset prices.
Yellen’s comments highlight the critical need for regulating stablecoins and the spot market for non-security cryptoassets, as well as the immediate necessity for thorough regulatory supervision of digital assets.
In her testimony, Yellen is anticipated to highlight the remarkable recovery efforts that the US economy has undergone over the last three years, which have helped it to remain resilient.
The Treasury Secretary will emphasize accomplishments including a strong job market, rising real wages, and a considerable gain in household median wealth, thanks to sustained GDP growth and falling inflation. She contends that a robust financial system is the bedrock upon which these achievements rest.
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