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Treasury’s financial stability watchdog warns cryptocurrencies could threaten safety of U.S. economy

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Treasury’s financial stability watchdog warns cryptocurrencies could threaten safety of U.S. economy

U.S. Treasury Secretary Janet Yellen speaks on the Atlantic Pageant on September 22, 2022 in Washington, DC.

Kevin Dietsch | Getty Photographs

The Treasury Division warned Monday that unregulated cryptocurrencies might pose a danger to the U.S. monetary system.

The warning was part of the primary main public report launched by the Treasury’s Monetary Stability Oversight Council on digital belongings. The council recognized digital or “crypto” belongings equivalent to stablecoins in addition to lending and borrowing on the trade’s buying and selling platforms as an “necessary rising vulnerability.” 

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“The report concludes that crypto-asset actions might pose dangers to the steadiness of the U.S. monetary system and emphasizes the significance of applicable regulation, together with enforcement of current legal guidelines,” Treasury Secretary Janet Yellen mentioned. “It’s critical that authorities stakeholders collectively work to make progress on these suggestions.”

The council first designated digital belongings a precedence space in February. 

World crypto-asset market capitalization reached a peak of roughly $3 trillion final November, comprising roughly 1% of world monetary belongings, in line with the report. Although the influence is comparatively small within the bigger world monetary system, digital financing is shortly gaining in reputation and is being manipulated by criminals for unlawful achieve, in line with the report.

Earlier this 12 months, the Treasury Division issued a sequence of sanctions in opposition to Russian oligarchs, sure Russian banks and different organizations for utilizing crypto belongings to evade sanctions. In September, the company blocked all property in possession or management of U.S. individuals for 22 people and two entities that helped digitally finance Russia’s invasion of Ukraine.

Stablecoins, a sort of cryptocurrency in style on the international change market, are additionally overwhelmingly utilized in speculative crypto-asset buying and selling, Rohit Chopra, director of the Client Monetary Safety Bureau, mentioned throughout a Monday FSOC assembly. Created for value stability, the value of the stablecoin is linked to flat currencies, commodities or different crypto belongings. 

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The group beneficial laws that empowers monetary regulators to extra vigorously oversee the trade in addition to increasing financial institution exams to require federal and state companies to have a look at providers supplied by crypto asset service corporations.

Fashioned after the 2008-2009 monetary disaster, FSOC identifies rising threats to the nation’s monetary safety and organizes a coordinated response throughout U.S. monetary regulators. Below the Dodd-Frank Act, the FSOC is permitted to oversee and regulate nonbank monetary corporations, monetary market utilities and fee, clearing or settlement actions to handle attainable vulnerabilities to monetary stability.

The report states that, to this point, the FSOC has not used this authority to control the cryptocurrency market.

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Crypto

Ripple Highlights Transatlantic Initiative as Blueprint for Global Crypto Regulation

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Ripple Highlights Transatlantic Initiative as Blueprint for Global Crypto Regulation
A groundbreaking transatlantic initiative is fueling institutional blockchain adoption, spotlighting stablecoins, tokenized assets, regulatory alignment, and cross-border finance, with Ripple positioned to shape global standards and accelerate digital growth.
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Crypto

Texas brothers charged in cryptocurrency kidnapping, robbery in MN

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Texas brothers charged in cryptocurrency kidnapping, robbery in MN

A Washington County family was reportedly kidnapped and held hostage at gunpoint for hours by two Texas brothers who ultimately took more than $72,000 in cryptocurrency. 

Raymond Christian Garcia, 23, and Isiah Angelo Garcia, 24, were each charged via warrant with three counts of kidnapping, three counts of first-degree burglary, and one count of first-degree aggravated robbery for their alleged roles.

The incident led to the Washington County Sheriff’s Office issued a shelter in place order while they searched for the suspects. The incident ultimately led to the cancellation of a high school homecoming football game in Mahtomedi.

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Home invasion and cryptocurrency theft

The backstory:

According to the criminal complaint, a 911 call was received at approximately 4:45 p.m. on Sept. 19 from someone in Grant, Minnesota, stating that he and his family had been kidnapped and were being held hostage at gunpoint in their home. 

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The complaint details that on Sept. 19, a man was taking out the garbage at around 7:45 a.m. when the armed brothers allegedly forced him back into the garage and bound his hands with zip ties. The men then woke up the two other people in the house, also binding them. 

Raymond Garcia is accused of holding the 911 caller and his mother hostage for nine hours while armed with an AR-15-style rifle. Police said the upstairs bedroom door was tied shut with wire and needed to be cut in order to free them, according to the complaint. 

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Meanwhile, Isiah Garcia, armed with a shotgun, allegedly forced the man to log into his cryptocurrency wallet and transfer over $36,000 to an unknown account, charges state. After learning of a separate crypto wallet kept at the family cabin in Jacobson, Minnesota, Isiah Garcia allegedly forced the man to drive three hours and transfer the additional cryptocurrency, valued at over $36,000.

According to the complaint, the victim believed some of his crypto account information had been leaked during a data breach. The charges note that the men were frequently on the phone with an “unknown third party who directed [them] to transfer the cryptocurrency.”

The victim inside the house called 911, and multiple squad cars passed Isiah Garcia as they were driving back from the cabin. Isiah Garcia then turned the truck around, parked, and fled on foot before discarding the shotgun in a nearby field, charges allege. 

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Raymond Garcia was seen on camera running out the back door of the home. During a search of the area, authorities recovered an AR-15 rifle in a suitcase located in the tree line behind the home, charges said.

Brothers arrested in Texas 

The investigation:

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According to the complaint, Isiah Garcia rented a car near Houston, Texas, on Sept. 16 and drove to Minnesota. The vehicle’s GPS data placed the car near the victim’s home and a motel in Roseville. On Sept. 21, Isiah Garcia was taken into custody while driving the same rental car in Texas. 

Raymond Garcia went to authorities on Sept. 22 to report that his AR-15 had been stolen in Waller, Texas. During a search of the brother’s home in the Waller area, authorities reportedly found a firearm box with a serial number matching the AR-15 recovered in Minnesota. 

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At the time the criminal complaints were filed, both men were in custody in Texas. 

The Source: This story uses previous FOX 9 reporting and information from a Washington County criminal complaint. 

Crime and Public SafetyWashington CountyTexas
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EU Enforcers Arrest 5 Over €100M Cryptocurrency Scam – Law360

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EU Enforcers Arrest 5 Over €100M Cryptocurrency Scam – Law360

By William Janes ( September 23, 2025, 2:12 PM BST) — Five people have been arrested on suspicion of carrying out a €100 million ($118 million) cryptocurrency fraud in a joint international operation by law enforcement agencies across Europe, a European Union law authority said Tuesday….

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