U.S. Senator Warren urges lawmakers to proceed with caution when developing regulatory framework for stablecoins

PANews, April 9. According to Politico, U.S. Senator Elizabeth Warren criticized the advancement of stabilization in a letter to House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and Representative Maxine Waters (D-Calif.) on Monday. Currency Bill Efforts. Warren warned that stablecoins pose risks to the banking system and national security, and in her letter she expressed concerns about current efforts to push for a stablecoin bill. The stablecoin bill passed the House Financial Services Committee over the summer but stalled amid bipartisan disputes. Warren urged House members to be aware of the significance of these risks when considering proposals to regulate stablecoins and to avoid introducing stablecoin legislation that could trigger another financial crisis. In addition, Warren also raised the issue of the use of stablecoins in illegal financial activities in the letter, citing the U.S. Treasury Department’s report on the increased use of stablecoins in terrorist financing. She suggested that lawmakers should proceed with caution when developing an appropriate regulatory framework for stablecoins.