Senator Elizabeth Warren has urged Treasury Secretary Janet Yellen to develop a "coordinated and cohesive regulatory strategy" on cryptocurrencies.
During the Senate Bank Committee Hearing, U.S. Senator Elizabeth Warren revealed that she had sent a letter to Treasury Secretary Janet Yellen in which she urged the Treasury Secretary to "act with urgency" on the regulation of the cryptocurrency market.
The letter penned by Senator Warren brought up the ‘dangers’ posed by cryptocurrencies and asked the Treasury Secretary as Chair of the Financial Stability Oversight Council (FSOC) to to “act with urgency” to address the risk of cryptocurrencies, noting how "cryptocurrencies currently touch or can ripple through nearly every corner of the financial system”.
“I have become increasingly concerned about the dangers cryptocurrencies pose to investors, consumers, and the environment in the absence of sufficient regulation in the United States.2 However, as the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, the Council must determine whether these trends raise concerns beyond investor and consumer protection and extend to broader systemic vulnerabilities that could threaten financial stability”
Warren pressed the matter of cryptocurrency regulation, bringing up the urgency and time constraints that regulation of this area involves, noting that the market could come under stress without quick action.
"FSOC should review this matter and determine whether it is appropriate to utilize its statutory authority to contain the systemic risks posed by the growing cryptocurrency market. The longer that the United States waits to adapt the proper regulatory regime for these assets, the more likely they will become so intertwined in our financial system that there could be potentially serious consequences if this market comes under stress."
A Senate Banking Committee hearing on cryptocurrency was held on Tuesday morning following the letter Warren sent.With a a hearing titled, “Cryptocurrencies: What are they good for?”. In addition to this hearing, separate hearings were held on central bank digital currency and Ransomware.
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