Janet Yellen calls for Congress to regulate stablecoins, crypto spot markets

Treasury Secretary Janet Yellen addressed Congress today, calling for comprehensive legislation to regulate non-securities crypto assets, emphasizing stablecoins. 

Appearing before the House Financial Services Committee today, Yellen argued that the risks associated with crypto assets have been growing, and there should be specific congressional action to protect U.S. citizens from the risks of investing in digital assets.

Yellen pointed out that non-compliant crypto platforms have increased, which should be controlled through more comprehensive laws and regulations. 

The secretary also believes that a federal regulator should have the power to approve or ban any stablecoin issuers based on effective risk and vulnerability assessment. 

“Council is focused on digital assets and related risks. Congress should pass legislation to regulate stablecoin and spot markets for crypto assets that are not securities.”

– Janet Yellen

Crypto regulations have become a major political talking point this year, and it’s also a critical focus of the upcoming U.S. Presidential election. The crypto industry has been making concerted efforts to back crypto-friendly policymakers, with significant financial commitments indicating a strategic push to sway policy and election outcomes in favor of digital assets. 

A few months ago, a trio of super PACs, backed by influential figures and companies within the crypto space, raised $78 million to support candidates favorable to crypto. The move is part of a broader strategy to counteract regulatory challenges and secure a more favorable policy environment for the industry​.