U.S. Treasury Secretary Janet Yellen on Friday warned it was "crucial" that a panel charged with monitoring financial risks be able to continue its work as worries grow President-elect Donald Trump's administration will again weaken the body.

Speaking at Friday's Financial Stability Oversight Council (FSOC) meeting, the last of President Joe Biden's administration, Yellen said that under Trump's first term the panel's staff shrank to single digits and the infrastructure supporting interagency coordination was significantly scaled back.

"This meant we were less equipped to identify and respond to risks to the financial system," she said, adding the Democratic Biden administration reinvested in the panel, which was created following the 2007-2009 crisis to monitor systemic risks.

"This strengthened Council has delivered, helping make our financial system more resilient and our economy stronger. It is crucial that it continue to do so for the benefit of the American people," she said in prepared remarks.

Trump has not laid out a vision for the financial regulators, but he has pledged to slash burdensome regulations.

Yellen's remarks came as the FSOC warned again in its annual report about potential risks posed by commercial real estate, private credit, and cryptocurrencies, and called on regulators and companies to be vigilant in monitoring vulnerabilities.

While the 2024 report echoes risks flagged in prior reports, it warns they have "evolved in consequential ways."

The group said there are signs of increasing commercial real estate risk, particularly in the office sector in large urban areas. Rises in office vacancies, slow rent growth, and higher borrowing costs were pressuring borrowers, leading to higher delinquencies and more provision expenses by banks.

On cryptocurrencies, the group warned that stablecoins could pose a risk to financial stability, and reiterated calls for legislation creating a comprehensive regulatory framework for the digital currency product. The group said that most other crypto firms and issuers either violate existing financial rules or operate outside their boundaries, creating heightened risks for "significant fraud and manipulation." The group called for legislation giving federal regulators explicit authority to police spot crypto markets, similar to its 2023 recommendation.

The group also warned that while there has yet to be a major cybersecurity incident at a large financial institution, the issue is top of mind for regulators and industry with cyberattacks having nearly doubled since the COVID-19 pandemic.