Yellen Calls for Stablecoin Regulation

Treasury Secretary Janet Yellen reiterated her call for Congress to regulate stablecoins following a significant decline this week in TerraUSD, The Wall Street Journal reported.

The fourth-largest stablecoin and 10th-largest cryptocurrency by market value, according to CoinMarketCap, saw its price hit 69 cents on Monday despite it being designed to remain fixed at $1.

"I think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability," Yellen said May 10 at Senate Banking Committee hearing. "We really need a consistent federal framework."

The Treasury secretary said it would be "highly appropriate" for Congress to attempt to get legislation regulating stablecoins done this year.