On July 26, 2021, Senator Elizabeth Warren wrote to Janet Yellen, Chair of the Financial Stability Oversight Council, urging her to “act with urgency” to “address cryptocurrencies’ risks and ensure the safety and stability of our financial system.”

Sen. Warren highlighted multiple areas of concern, including:

  • The “dangers cryptocurrencies pose to investors, consumers, and the environment in the absence of sufficient regulation in the United States”;
  • That “[H]edge funds are ‘aggressively increasing exposure to blockchain technologies and cryptocurrency’”;
  • The potential for cryptocurrencies to increase risks to the banking sector;
  • The potential for stablecoins to “pose risks to financial stability”;
  • Risks from Cyberattacks;
  • Risks from Decentralized Finance (DeFi);

Sen. Warren’s full letter can be found here.