U.S.
Treasury
Secretary
Janet
Yellen
is
set
to
tell
Congress
that
the
crypto
industry
poses
several
potential
hazards
to
the
financial
system,
including
the
dangers
of
stablecoins,
runs
on
crypto
platforms
and
volatile
prices,
according
to
a
brief
portion
of
her
testimony
posted
Monday.
Yellen
is
appearing
before
the
House
Financial
Services
Committee
on
Tuesday
to
explain
the
latest
work
of
the
Financial
Stability
Oversight
Council
(FSOC),
a
group
of
U.S.
financial
agency
heads
that
the
secretary
leads.
The
council,
which
is
meant
to
head
off
the
next
financial
crisis
before
it
happens,
has
paid
special
attention
to
crypto
risks
in
recent
years,
putting
them
among
the
top
categories
of
potential
worry.
“The
council
is
focused
on
digital
assets
and
related
risks
such
as
from
runs
on
crypto-asset
platforms
and
stablecoins,
potential
vulnerabilities
from
crypto-asset
price
volatility,
and
the
proliferation
of
platforms
acting
outside
of
or
out
of
compliance
with
applicable
laws
and
regulations,”
she
said
in
the
testimony
prepared
for
delivery,
which
was
posted
on
the
committee’s
website.
Yellen
said
she’ll
keep
working
with
Congress
on
crypto
legislation.
“Applicable
rules
and
regulations
should
be
enforced,
and
Congress
should
pass
legislation
to
provide
for
the
regulation
of
stablecoins
and
of
the
spot
market
for
crypto-assets
that
are
not
securities,”
she
said.
Her
brief
remarks
don’t
reveal
any
new
interest
or
initiative,
but
the
fact
she
included
digital
assets
as
one
of
her
key
issues
keeps
the
crypto
sector
in
the
spotlight
of
the
U.S.
government’s
financial
concerns.
