US Treasury Secretary calls for stablecoin regulation by end of year

What

U.S Treasury Secretary Janet Yellen called for stablecoin regulation during an annual testimony in front of the Senate Banking Committee yesterday

Why 

She argued that digital assets may present risks to the financial system and increased and coordinated regulation attention was necessary

What next

The U.S. Treasury plans to release a report on cryptocurrencies and stablecoins and create legislation for stablecoins by the end of the year

The Story

During an annual testimony in front of the Senate Banking Committee, U.S. Treasury Secretary Janet Yellen called for greater regulation of stablecoins.

“New products and technology may present opportunities to promote innovation and increase efficiencies,” Yellen said. “However, digital assets may present risks to the financial system and increased and coordinated regulatory attention is necessary.”

Stressing the need for a consistent federal framework, Yellen went on to say that stablecoin regulation was “highly appropriate” to come into effect by the end of 2022, citing the “many risks associated with cryptocurrencies.”

The U.S. Treasury plans to release a report on cryptocurrencies and stablecoins in the coming months.

To learn more about stablecoins and other cryptocurrencies, visit our learning resource here.