Janet Yellen, Secretary of the US Treasury, brought attention to stablecoin regulation in the US and how rules for stablecoin issuers were very important.
The US House Financial Services Committee hearing witnessed a detailed discussion on stablecoin regulation. The hearing was regarding the annual report of the Financial Stability Oversight Council. The Chair of the Committee questioned US Treasury Secretary Janet Yellen regarding crypto regulation, after which the discussion ensued.
The Chair, Patrick McHenry, questioned Yellen specifically regarding the pending crypto bills in the US regarding stablecoin issuers.
In response, Yellen said, “There are many areas with respect to digital assets where we do have clear regulatory authority, but we’ve identified some gaps where, for consumer investor protection and to address financial stability risk, it would be useful for Congress to take action to fill those gaps.”
Moreover, she said the Commodity Futures Trading Commission (CFTC) should be the regulator for stablecoin issuers. In her opinion, broad stablecoin regulation was more important than state-wise regulation. In 2023, the US Congress saw several hearings regarding crypto bills on stablecoins. Two bills, each represented by the Republicans and the Democrats, were up for discussion.
Since then, the crypto bills have not seen much progress in the US. As a result, regulation for stablecoin issuers met a sudden roadblock, which hasn’t taken off yet.
Meanwhile, the US House Financial Services Committee had adopted a pro-crypto stance last year. The committee passed several bills in 2023 related to crypto regulation in the US.
In 2024, after a long gap, the importance of digital asset regulation in the US picked up again. US lawmaker French Hill made a few remarks in support of crypto regulation. Together with the US Treasury Secretary’s statements, the crypto bills could see rising support in 2024.
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