U.S. Treasury Secretary Janet Yellen testified before the House’s Financial Services Committee. Topics like cybersecurity risks, coordination efforts among regulatory agencies, the role of AI in the financial sector, and cryptocurrency regulation were discussed. Stablecoins had a central role during the hearing, with Yellen stressing the need for lawmakers to pass regulations specifically tailored to the industry.
Stablecoins Remain a Major Concern
Stablecoins Are Not the Enemy
Stablecoin Regulations Might be Coming Soon
Stablecoin Regulations Might be Coming Soon
During the hearing, Yellen proposed the development of a “regulatory floor” that would provide a basic framework to all states and operators. She also suggested that a federal regulator would have “the ability to decide if a stablecoin issuer should be barred”.
Such regulation wouldn’t be targeted at stablecoins only but a variety of crypto-related products and services so wide that it would include wallets. In this regard, Yellen said it was “critical to enact regulatory protections” as these wallets are a “critical part of the stablecoin ecosystem” that can result in “significant losses”.
U.S. lawmakers seem to agree with Yellen on the urgency, with the issue being more about reaching a consensus. Senator Cynthia Lummis recently said that “pretty delicate” negotiations were taking place around the topic, with these being an everyday matter despite the apparent slow progress.
Senator Lummis told CoinDesk that she remained optimistic, stating that legislation could be seen as soon as “the first half of this calendar year”. As a member of the banking committee and one of the most vocal supporters of stablecoins in Congress, Lummis has played a central role in the push for regulatory clarity.
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Author: Nicholas Say
