Sen. Elizabeth Warren is urging Treasury Secretary Janet Yellen to take the lead in the push to regulate cryptocurrencies, which she said pose a serious danger to the financial system.
Warren wants the Financial Stability Oversight Council, which is led by Yellen, to take "a leading role" in developing a regulatory response to the crypto and blockchain industry, amid varied, uncoordinated responses from different federal agencies.
"It is essential that the policy response to the risks posed by these assets is coordinated and holistic, rather than fragmented amongst individual financial agencies," Warren said in a July 26 letter.
The FSOC, which was created in the wake of the 2008-2009 financial crisis, is composed of key federal agencies focused on the financial and economic issues, including the Treasury Department, the Securities and Exchange Commission and the Consumer Financial Protection Bureau. The treasury secretary serves as the council's chairperson.
Warren, an outspoken critic of the crypto and blockchain industries, warned: "The longer that the United States waits to adapt the proper regulatory regime for these assets, the more likely they will become so intertwined in our financial system that there could be potentially serious consequences if this market comes under stress."