U.S. Treasury Secretary calls for crypto legislation on “non-security” tokens

US Treasury Secretary Janet Yellen stated at a hearing held by the House Financial Services Committee (HFSC) on Tuesday that "Congress should pass legislation to regulate stablecoins and spot markets for non-securities crypto assets". Yellen acknowledged that current rules and regulations should also be enforced and cited various ways in which digital assets could affect national financial stability, including "runs" on exchanges or stablecoin providers, as well as volatility in the cryptocurrency market. Regarding stablecoins, Yellen stated that federal regulatory agencies should be able to shut down stablecoin issuers that do not meet the national "regulatory bottom line", which is "critical" for providing regulatory protection to stablecoin wallet holders.