Treasury Secretary Janet Yellen Warns of Crypto Risks

Yellen is set to tell U.S. lawmakers that the FSOC is especially wary of stablecoins and the potential for digital asset runs. U.S. Treasury Secretary Janet Yellen is set to tell Congress that the crypto industry poses several potential hazards to the financial system, including the dangers of stablecoins, runs on crypto platforms and volatile prices, according to a brief portion of her testimony posted Monday. Yellen is appearing before the House Financial Services Committee on Tuesday to explain the latest work of the Financial Stability Oversight Council (FSOC), a group of U.S. financial agency heads that the secretary leads. The council, which is meant to head off the next financial crisis before it happens, has paid special attention to crypto risks in recent years, putting them among the top categories of potential worry.