Yellen's Crypto Caution: Stablecoins and Volatility in the Spotlight

U.S. Treasury Secretary Janet Yellen is set to address Congress, highlighting the potential risks posed by the cryptocurrency industry to the financial system. Yellen's testimony, posted ahead of her appearance before the House Financial Services Committee, emphasises concerns regarding stablecoins, the risk of runs on crypto platforms, and the volatility of cryptocurrency prices. Yellen leads the Financial Stability Oversight Council (FSOC), a group of U.S. financial agency heads focused on preventing future financial crises. The FSOC has prioritised assessing and addressing crypto-related risks, including those associated with digital assets, unstable prices, and platforms operating outside of regulatory compliance.