Sen. Elizabeth Warren on Tuesday urged Treasury Secretary Janet Yellen to identify and remedy risks posed by cryptocurrencies and to craft a “comprehensive and coordinated” framework through which federal agencies can regulate virtual coins on an ongoing basis.
Warren, a member of the Senate Banking Committee and a longtime critic of the nation’s largest banks, pressed the Treasury secretary to use her powers on the Financial Stability Oversight Council to bring about a safer crypto market.
“FSOC must act quickly to use its statutory authority to address cryptocurrencies’ risks and regulate the market to ensure the safety and stability of consumers and our financial system,” the Massachusetts Democrat wrote in a letter to Yellen.
“As the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, consumers, the environment, and our financial system are under growing threats,” she added.
Warren cited five risks posed by an underregulated crypto market. In her words, they are:
Unique threats posed by stablecoins
Use in cyberattacks that can disrupt the financial system
Risks from decentralized finance
A spokesperson for the Treasury Department did not immediately.
Warren’s letter also came as she and other lawmakers on the Senate Banking Committee kicked off a hearing titled, “Cryptocurrencies: What are they good for?”
Senators will grill Coin Center Executive Director Jerry Brito, Filecoin Foundation Chair Marta Belcher and Angela Walch, a research fellow at the Center for Blockchain Technologies at University College London, during Tuesday’s hearing.
Sen. Elizabeth Warren on Tuesday urged Treasury Secretary Janet Yellen to identify and remedy risks posed by cryptocurrencies and to craft a “comprehensive and coordinated” framework through which federal agencies can regulate virtual coins on an ongoing basis.
Warren, a member of the Senate Banking Committee and a longtime critic of the nation’s largest banks, pressed the Treasury secretary to use her powers on the Financial Stability Oversight Council to bring about a safer crypto market.
“FSOC must act quickly to use its statutory authority to address cryptocurrencies’ risks and regulate the market to ensure the safety and stability of consumers and our financial system,” the Massachusetts Democrat wrote in a letter to Yellen.
“As the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, consumers, the environment, and our financial system are under growing threats,” she added.
Warren cited five risks posed by an underregulated crypto market. In her words, they are:
Risks from decentralized finance
A spokesperson for the Treasury Department did not immediatel.
Warren’s letter also came as she and other lawmakers on the Senate Banking Committee kicked off a hearing titled, “Cryptocurrencies: What are they good for?”
Senators will grill Coin Center Executive Director Jerry Brito, Filecoin Foundation Chair Marta Belcher and Angela Walch, a research fellow at the Center for Blockchain Technologies at University College London, during Tuesday’s hearing.
