Yellen made these remarks during an hearing before the U.S. House of Representatives Committee on Financial Services. She said:
“The [Treasury’s Financial Stability Oversight Council (FSOC)] is focused on digital assets and related risks … 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.”
Yellen identified these risks as attacks on crypto-assets and stablecoins. He also mentioned vulnerabilities from fluctuations in crypto prices and non-compliant platforms.
Her statements seem to be part of a response to a Feb. 6 letterFour Republican lawmakers have asked for additional information about the FSOC.
Yellen’s statements only address the issue broadly. The letter poses more specific questions including whether or not the FSOC believes in Bitcoin.BTCEthereum (ETH) are not securities, and whether it believes that the Commodity Futures Trading Committee (CFTC) should have its authority expanded to spot markets for non-securities crypto assets. The letter asks for a response before February 20.
Lawmakers support alternative legislation
Four Republican members of Congress and House members signed a letter to Yellen. Patrick McHenry, Dustin Johnson, French Hill and Glenn Thompson.
These lawmakers acknowledged in their letters that the FSOC identified a need for regulatory oversight, including in digital assets that aren’t considered securities. Although the FSOC identified these gaps, it hasn’t done anything about them. “failed to facilitate an environment that ensures consumer protection and fosters digital asset innovation,”A press release from legislators noted.
Republican lawmakers instead advocated legislation called the Financial Innovation and Technology Act for the 21st Century. This act aims to define the roles and responsibilities of federal regulators and provide protection for customers.
Though FIT21’s authors are Republican, the bill passed out of committee with bipartisan support during a mid-2023 vote. The CEO of Coinbase has endorsed the bill. Brian ArmstrongThe following are some examples of how to get started: The Blockchain Association.
Original content by Cryptoslate.com: “Congress should permit crypto to be regulated outside of securities laws: U.S. Sec. Treasury”
Read the complete article at https://cryptoslate.com/congress-should-allow-crypto-to-be-regulated-beyond-securities-laws-u-s-secretary-treasury/