Stablecoin Claims Again on the Agenda: Urgent Call to Congress in the US! - Coin Bulletin

FSOC, in its 2024 report, once again called on Congress for comprehensive federal regulations, stating that stablecoins and the unregulated crypto market pose serious risks to financial stability.

The Financial Stability Oversight Council (FSOC) of the United States has released its 2024 annual report, drawing attention to the risks on the U.S. and global financial system. As in recent years, this report also highlighted stablecoins and the digital asset sector in general as prominent issues. However, the FSOC did not propose a concrete step to address these concerns.

The report once again emphasized that the exclusion of stablecoins from a federal regulatory framework poses a risk to financial stability. FSOC pointed out that due to the lack of risk management standards, stablecoins are vulnerable to liquidity crises. It noted that this is further complicated by issues such as market concentration and lack of transparency.

The report emphasized that Tether's USDT stablecoin accounts for approximately 70% of the global stablecoin market, highlighting the need for regulators to closely monitor this issue. Additionally, it was noted that although there are regulatory frameworks for stablecoins in some states, the lack of a sufficient system at the federal level is concerning.

US Treasury Secretary Janet Yellen, in her prepared statement, drew attention to the efficiency advantages that digital assets and artificial intelligence can bring, as well as financial risks, cyber threats, and issues arising from third-party service providers. Yellen called for a comprehensive federal regulatory framework for stablecoin issuers and the enactment of a law to address risks related to crypto assets.