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Yellen Cites UST Breakdown While Calling for Stablecoin Rules
Treasury Secretary Janet Yellen said the de-pegging of TerraUSD shows the urgency to have a regulatory framework on stablecoins, which aim to minimize the volatile price swings seen in most cryptocurrencies.
“A stablecoin known as TerraUSD experienced a run and had declined in value,” Yellen said during testimony before the Senate Banking, Housing and Urban Affairs Committee on Tuesday. “I think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”
Treasury Secretary Janet Yellen said the de-pegging of TerraUSD shows the urgency to have a regulatory framework on stablecoins, which aim to minimize the volatile price swings seen in most cryptocurrencies.
“A stablecoin known as TerraUSD experienced a run and had declined in value,” Yellen said during testimony before the Senate Banking, Housing and Urban Affairs Committee on Tuesday. “I think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”
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