US Treasury Secretary Yellen: The financial system still faces risks from commercial real estate and cryptocurrencies

According to Bloomberg, U.S. Treasury Secretary Janet Yellen urged the Financial Stability Oversight Council (FSOC) to further strengthen regulation of cryptocurrencies and stablecoins at its final meeting this year.

She stated that despite cooling inflation and a low unemployment rate boosting the overall economy, the U.S. financial system will still face risks from commercial real estate and vulnerabilities brought about by digital assets in 2024. "The committee continues to call for legislation to establish a comprehensive federal prudential framework for stablecoin issuers, and develop laws targeting crypto assets to address risks we have already identified. We recommend further establishing cross-agency expertise to analyze and monitor potential systemic risks brought about by the use of artificial intelligence in the financial services industry while promoting innovation."