Important points
Yellen called for stronger oversight of cryptocurrencies in the FSOC’s final report before Trump’s term. President Trump’s appointments of crypto advocates such as David Sachs as “crypto czar” and Scott Bessent as Treasury secretary signal a possible shift toward deregulation.
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Treasury Secretary Janet Yellen called for increased oversight of cryptocurrencies and stablecoins in the final report of the Financial Stability Oversight Council (FSOC) under the Biden administration, Bloomberg reports.
Yellen highlighted the growing risks these digital assets pose to the U.S. financial system and the urgent need for comprehensive regulation to address them.
“The Board continues to push for legislation to create a comprehensive federal prudential framework for stablecoin issuers and crypto-asset legislation that addresses the risks we have identified,” Yellen said. ” he said.
He pointed out that while innovation in digital assets brings efficiencies, it also brings vulnerabilities such as cybersecurity threats and systemic risks.
Yellen has expressed skepticism about digital assets, previously expressing concern that they could be used for illegal activities or threaten financial stability. .
In 2021, she particularly highlighted the risks of illegal transactions facilitated through cryptocurrencies.
The report was released as Yellen’s final contribution before President Donald Trump takes office on January 20th.
The incoming administration is expected to take a more friendly stance toward cryptocurrencies, with President Trump appointing former PayPal executive David Sachs as the “White House AI and Cryptocurrency Czar.”
President Trump also nominated hedge fund manager Scott Bessent to replace Yellen as the new Treasury secretary.
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