Stablecoin Legislation Passing Swiftly! US Treasury Secretary Yellen: Strengthening Oversight of Stablecoin Issuers and Establishing Federal Standards is Imperative.
US Treasury Secretary Yellen emphasized the urgency of implementing strong regulatory measures for cryptocurrencies during a recent congressional hearing on February 6th. The aim is to reduce the risks that digital assets may pose to investors and the broader financial system.
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Yellen emphasizes the need to supervise stablecoin issuers
Different states call for unified regulatory approach
Progress in US stablecoin legislation
Stablecoin bill near completion
The discussion centered around the annual report of the Financial Stability Oversight Council, with Patrick McHenry, Chair of the House Financial Services Committee, questioning Yellen on her views regarding proposed legislation aimed at strengthening stablecoin governance and clarifying the regulatory framework for cryptocurrencies.
Yellen emphasized the importance of regulation in critical areas, particularly in protecting digital wallet holders and supervising stablecoin issuers.
Yellen stated, “In the area of digital assets, we have many areas of clear regulatory authority, but we have identified some gaps that Congress taking action to fill would be very helpful for consumer and investor protection as well as addressing financial stability risks.”
Yellen specifically highlighted the lack of comprehensive regulatory power of the Commodity Futures Trading Commission (CFTC) over spot markets for commodities such as Bitcoin, and pointed out the potential systemic risks stablecoins pose to the US financial infrastructure. She advocated for a standardized federal regulatory framework to replace the current fragmented interstate regulations.
Yellen’s stance on the need for stablecoin issuers to have a federal regulatory floor aligns with her consistent theme of advocating for clear regulatory boundaries for cryptocurrencies in the US. This action echoes previous public statements by the Treasury Secretary, urging the establishment of a solid regulatory framework for the cryptocurrency field.
The push for clearer regulation has made some progress, with the House Financial Services Committee passing the 21st Century Financial Innovation and Technology Act as well as the Payment Stablecoin Clarity Act in July 2023.
These bills are now awaiting a full House vote, indicating significant progress that can be made in pursuing regulatory clarity and investor protection in the digital asset space.
According to Representative Maxine Waters in an interview with Politico, the stablecoin bill is very close to completion. Committee Chair Patrick McHenry has been continuously pushing for this legislation for the past 20 months.
Stablecoin
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