Treasury Secretary Janet Yellen has expressed concerns about the risks that cryptocurrencies pose to the US financial system during a meeting of the Financial Stability Oversight Council (FSOC). The FSOC is calling for comprehensive legislation to regulate cryptocurrencies and mitigate these risks. Yellen has previously called for urgent regulation, especially for dollar-backed stablecoins, and pointed out the risks they pose after the collapse of the Terra ecosystem in May 2022. A bipartisan stablecoin bill proposed by two US senators aims to ban algorithmic stablecoins like UST. Yellen emphasized the need for a "prudential framework" for the rapidly growing cryptocurrency market. However, American hedge fund manager Scott Bessent, who is nominated to replace Yellen, has shown support for cryptocurrencies and believes they are here to stay, noting the potential of Bitcoin to attract young investors and expand market participation.



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