Crypto News: US Treasury Secretary Reaffirms Need for Stablecoin Regulation

Crypto News – US Treasury Secretary has reaffirms the need for stablecoin regulation following UST crash 

iexclusivenews reports that the United States Secretary of the Treasury, Janet Yellen. Called on U.S. lawmakers to develop a “consistent federal framework” on stablecoins to address risks to financial stability.

This online news outlet understands that the Senate Banking Committee held a hearing on the Financial Stability Oversight Council Annual Report to Congress on Tuesday.

Yellen restated her previous opinion on the need for a stablecoin regulatory framework. The President’s Working Group on Financial Markets issued a report in November.

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The Treasury Secretary also addressed TerraUSD (UST), the third-largest stablecoin by market capitalization, which has dropped to $0.67 in the last 24 hours.

“I think [the situation with TerraUSD] simply illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate,” said Yellen.

What You Need To Know 

Senator Pat Toomey of Pennsylvania pointed out to Yellen that UST was an algorithmic stablecoin that was “not backed by cash or securities.”

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Given the market’s expansion, the Treasury Secretary said it would be “very appropriate” to aim for a “uniform federal framework” on stablecoins by the end of 2022.

She urged members of Congress to work together to pass legislation creating such a structure.

On Tuesday, US Treasury Secretary Janet Yellen spoke to members of the Senate Banking Committee.

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She stated this in her written testimony for the hearing. According to Yellen, the Financial Stability Supervision Council is working on a report in response to US President Joe Biden’s executive order on digital assets.

Which will identify potential financial stability risks as well as regulatory oversight gaps.

iexclusivenews understands that as part of efforts to build a national framework on crypto. The order directed multiple government entities to coordinate and streamline policy.

Since January 2021, Yellen has served as Treasury Secretary in the Biden administration.

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Meanwhile iexclusivenews Nigeria reports that she has already stated that cryptocurrencies are a “special concern” for the government department.

Linking many token projects to “illicit funding” and money laundering.

Many of her recent public pronouncements on crypto policy appear to have centered on stablecoins and the creation of an acceptable regulatory framework.