Crypto meltdown prompts Yellen to call for new regulation
2 years, 7 months ago

Crypto meltdown prompts Yellen to call for new regulation

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen, responding to the recent sharp decline in the value of cryptocurrencies, said Thursday that additional federal regulation was needed to respond to the wave of speculative investment in the currency whose secrecy is an essential part of its appeal. “We really need a regulatory framework to guard against the risks,” Yellen said of cryptocurrencies called stable coins, during a House committee hearing Thursday. Citing the rapid rise in use of digital assets, she added, “Really, we need a comprehensive framework so that there are no gaps in the regulation.” Stable coins are a type of cryptocurrency pegged to a specific value, usually the dollar, another currency or gold. “Terra broke the buck and this morning and yesterday the largest stable coin Tether also broke the buck,” referring to another token that dropped below its dollar peg this week. “We have a really good strong labor market, we have household balance sheets that are in good shape,” as well as a strong banking sector, Yellen said.

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History of this topic

Dollar hovers near 3-week high before Fed; bitcoin tops $106,000
1 week ago

Dollar hovers near 3-week high before Fed; bitcoin tops $106,000

Live Mint  

* Federal Reserve, BOJ, BoE rate decisions in focus this week * Fed expected to cut by 25 bps on Wed, forgo January cut * Bitcoin climbs to record $106,533 By Kevin Buckland and Greta Rosen Fondahn TOKYO/GDANSK, Dec 16 - The U.S. dollar hovered close to a three-week high versus other major currencies on Monday, ahead of a week …

The US Federal Reserve’s approach to risk could endanger a soft landing
10 months, 3 weeks ago

The US Federal Reserve’s approach to risk could endanger a soft landing

Live Mint  

The inflation problem is largely behind us, and most signs suggest that Federal Reserve policymakers know it. I would argue that’s partially due to the challenges of consensus-building on the Fed’s rate-setting committee, as well as the central bank’s understandable desire to avoid unduly injecting volatility into financial markets. Recent troubles at New York Community Bancorp—whose shares tumbled 38% on …

Yellen says US prepared to take more action to keep bank deposits safe
1 year, 9 months ago

Yellen says US prepared to take more action to keep bank deposits safe

Live Mint  

US Treasury Secretary Janet Yellen reiterated on Thursday that she was prepared to take further action to ensure that Americans' bank deposits stay safe amid turmoil in the banking system. "As I have said, we have used important tools to act quickly to prevent contagion," Yellen said in remarks to the U.S. House of Representatives Appropriations subcommittee hearing. Separately on …

Yellen says bank situation stabilizing, different from 2008
1 year, 9 months ago

Yellen says bank situation stabilizing, different from 2008

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen projected calm on Tuesday after recent regional bank collapses but told a gathering of bankers that additional rescue arrangements “could be warranted” if any new failures at smaller institutions jeopardize financial stability. Yellen, who made her remarks at the American Bankers Association, said that overall “the situation is stabilizing.” “And the U.S. banking system …

US Fed speech: Powell boosts warning on crypto industry and its ‘turmoil’
1 year, 9 months ago

US Fed speech: Powell boosts warning on crypto industry and its ‘turmoil’

Live Mint  

US Federal Reserve Chair Jerome Powell on Tuesday informed that US interest rates will likely peak at a higher level than previously expected due to stronger economic data. This was likely due to "unseasonably warm weather," said Powell adding “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the …

Top US regulators say crypto poses financial stability risks
2 years, 2 months ago

Top US regulators say crypto poses financial stability risks

Associated Press  

WASHINGTON — Top regulators on Monday recommended a series of new safeguards to ensure that a growing and unregulated cryptocurrency market doesn’t imperil U.S. financial stability. Members of the Financial Stability Oversight Council met Monday to approve the recommendations of a 125-page report created in response to President Joe Biden’s March executive order on digital assets. Powell, who has recently …

Fed’s Powell urges broader regulation for stablecoins
2 years, 2 months ago

Fed’s Powell urges broader regulation for stablecoins

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell said Tuesday that stablecoins will need greater regulation as they become more widely used by consumers. Powell also said, in virtual remarks to a conference on digital finance in Paris, that the Fed hasn’t yet decided on whether to proceed with a digital dollar. The Fed’s sharp interest rate increases this year, Powell …

Bank of England: Crypto crashes show need for tougher rules
2 years, 5 months ago

Bank of England: Crypto crashes show need for tougher rules

Associated Press  

LONDON — The Bank of England warned Tuesday that recent cryptocurrency meltdowns that wiped out more then $2 trillion in value highlight the need for tougher financial regulations The U.K.'s central bank said that the crashes exposed vulnerabilities in the crypto markets reminiscent of previous bouts of financial turmoil. Extreme volatility in the crypto markets, including so-called stablecoins, resulted in …

A crypto winter or a meltdown? Recession fears and layoffs hit crypto currencies
2 years, 6 months ago

A crypto winter or a meltdown? Recession fears and layoffs hit crypto currencies

NPR  

A crypto winter or a meltdown? Recession fears and layoffs hit crypto currencies As a rout in digital currencies deepens, crypto companies are warning of a coming recession and laying off hundreds of employees. GURA: Well, these are speculative assets, and a lot of what's driving the sell-off in stocks is also driving the sell-off in digital currencies. GURA: I'll …

Treasury Secretary Yellen expects inflation to ‘remain high’
2 years, 6 months ago

Treasury Secretary Yellen expects inflation to ‘remain high’

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen acknowledged Tuesday that she and Federal Reserve Chair Jerome Powell “could have used a better word” than “transitory” when describing the expected run of inflation in the U.S. economy. “I do expect inflation to remain high although I very much hope that it will be coming down now,” Yellen told the Senate Finance Committee …

Yellen calls for crypto regulation to reduce risks, fraud
2 years, 8 months ago

Yellen calls for crypto regulation to reduce risks, fraud

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen says more government regulation is needed to police the proliferation of cryptocurrency and ward off fraudulent or illicit transactions. It was Yellen’s first speech about cryptocurrency since President Joe Biden signed an executive order on digital assets in March. Biden’s cryptocurrency executive order urges the Federal Reserve to explore whether the central bank should …

Powell: Digital currencies will require new regulations
2 years, 9 months ago

Powell: Digital currencies will require new regulations

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell said new forms of digital money such as cryptocurrencies and stablecoins present risks to the U.S. financial system and will require new rules to protect consumers. “Stablecoins, central bank digital currencies, and digital finance more generally, will require changes to existing laws and regulation or even entirely new rules and frameworks.” Stablecoins are …

Joe Biden’s financial team could create a giant stock bubble
4 years ago

Joe Biden’s financial team could create a giant stock bubble

CNN  

New York CNN Business — Federal Reserve Chair Jerome Powell has made abundantly clear that he is more concerned about the challenging job market than the possibility that more stimulus may eventually lead to higher inflation. So with Yellen and Powell set to work closely together again, because she is President-elect Joe Biden’s nominee for Treasury Secretary, do investors need …

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