US Senator Elizabeth Warren has issued a warning that stablecoins pose a risk to the banking system and national security. The stablecoin bill has passed the House Financial Services Committee in the summer, but has been stalled due to bipartisan disputes. Warren urges lawmakers to consider the significance of these risks when considering proposals to regulate stablecoins and avoid introducing stablecoin legislation that could trigger another financial crisis. In addition, Warren also mentioned the issue of stablecoins being used in illegal financial activities, citing a report from the US Department of the Treasury on the increased use of stablecoins in terrorist financing.
US Senator Warren: Stablecoins pose risks to the banking system and national security
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