Janet Yellen Says Stablecoin Market Not Yet a Financial Stability Concern

The United States Treasury Secretary Janet Yellen doesn't think that the stablecoin market is in a position to pose financial stability. Despite the recent turmoil in crypto markets, Treasury Secretary Janet Yellen said that stablecoins don’t yet present a systemic financial risk, but U.S. Treasury Secretary Janet Yellen told lawmakers on Tuesday that Congress should provide a federal authority to regulate stablecoin issuers and wallet providers.

According to US Treasury Secretary Janet Yellen, the stablecoin market has not yet reached a size that would pose a systemic risk to the US financial system. WASHINGTON. Stablecoins’ recent depegging is not a ‘real threat to financial stability,’ says Janet Yellen.

For Janet Yellen, stablecoins do not pose a serious threat to financial stability, and she is betting on CBDCs. However, Treasury Secretary Janet Yellen on Thursday addressed the loss of US dollar pegs by the stablecoins TerraUSD and Tether. The moves don't yet pose a real threat to the wider financial system, according to Yellen. While downplaying immediate systemic risk, Yellen reiterated the need for regulation to manage the sector's growth and potential future impact.