According to PANews, the Financial Stability Oversight Council (FSOC) has expressed concerns in its 2024 annual report about the increasing risks stablecoins pose to financial stability due to insufficient regulation and high market concentration. The report emphasizes the urgent need for legislative action to establish a comprehensive federal framework for stablecoin issuers. This framework aims to mitigate risks associated with the rapid growth and limited transparency of stablecoins.
The FSOC's report also highlights the necessity for stricter regulation of the broader cryptocurrency market, especially as it becomes more integrated with the traditional financial system and continues to gain institutional adoption. The council's call for action underscores the importance of addressing these emerging risks to ensure the stability and security of the financial landscape.