Yellen Urges Enhanced Cryptocurrency Regulation

According to PANews, U.S. Treasury Secretary Janet Yellen has called for the Financial Stability Oversight Council (FSOC) to intensify its regulatory oversight of cryptocurrencies and stablecoins. This appeal was made during the council's final meeting of the year. Yellen highlighted that despite the positive economic indicators such as cooling inflation and low unemployment rates, the U.S. financial system will continue to face vulnerabilities in 2024, particularly from commercial real estate risks and digital assets. Yellen emphasized the need for comprehensive federal prudential frameworks for stablecoin issuers and legislative measures to address the risks associated with crypto assets. She also recommended the development of cross-agency expertise to analyze and monitor the potential systemic risks posed by the use of artificial intelligence in the financial services industry, while simultaneously encouraging innovation. This approach aims to bolster the resilience of the financial system against emerging threats and ensure a balanced regulatory environment that supports technological advancements.