U.S. Treasury Secretary Janet Yellen directly addressed the issue of both UST and tether “breaking the buck” this week. In a congressional hearing, Yellen said such assets don’t currently pose a systemic risk to financial stability — but suggested they eventually could.
“I wouldn’t characterize it at this scale as a real threat to financial stability but they’re growing very rapidly,” she told lawmakers Thursday.
“They present the same kind of risks that we have known for centuries in connection with bank runs.”
‘Enforcement 40’ for 2020
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