Yellen again calls for stricter regulation of cryptoassets and stablecoins

U.S. Treasury Secretary Janet Yellen has again called for stricter regulation of cryptoassets and stablecoins, noting the need to address vulnerabilities in the financial system.
Speaking at the final meeting of the Financial Stability Oversight Council (FSOC) this year, Yellen highlighted the dual impact of digital asset innovation. While it brings market benefits, it also poses significant risks such as cyber security threats and operational challenges.
Yellen warned that the pace of innovation in digital assets is outpacing the existing regulatory framework. She urged the Financial Stability Oversight Council to prioritize federal policy for stablecoin holders and push for legislative measures to reduce the risks associated with digital currencies.