US Treasury Secretary Janet Yellen Urges US lawmakers to develop a “federal framework” on stablecoins to address financial stability risks.
In a hearing on Tuesday of the Senate Banking Committee about the Financial Stability Oversight Council’s annual report to Congress, Yellen was.repeatHer previous stance called for a financial security regulatory framework. Referring to the President’s Financial Markets Working Group report in November, the Finance Minister also commented on TerraUSD (UST), the third-largest stablecoin by market cap, falling to $0.67. in the last 24 hours
“I think that [สถานการณ์ของ TerraUSD] Shows that this is a fast growing product. and there is a risk to financial stability And we need a proper framework,” Yellen said.
Pennsylvania Senator Pat Toomey, in response to Yellen questions, pointed out that UST is a stablecoin algorithm “not backed by cash or securities.” “That’s perfectly appropriate” to set goals for “Unified Federal Framework” on security by the end of 2022 due to market growth And she called on parliamentarians to enact legislation for that framework.
Yellen said the Financial Stability Oversight Council is working on a report aligned withPresident Joe Biden’s Executive Order on Digital Assetsof the United States by identifying potential risks to financial stability including any gaps in regulatory oversight. The order calls on several government agencies to coordinate and integrate policies as part of their efforts to develop a national framework on crypto.
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