Cryptocurrency

Janet

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/fsoc-identifies-financial-threats-from-stablecoins" data-wpel-link="internal" rel="noopener noreferrer nofollow">FSOC Identifies Financial Threats from Stablecoins</a><br></p>
<p style="text-align: justify">The Financial Stability Oversight Council (FSOC) has unveiled its latest annual report for 2024, shedding light on significant risks that could destabilize both the U.S. and global financial landscapes. The document cautions that the unchecked expansion of stablecoins has the potential to worsen these vulnerabilities, although it stops short of outlining specific remedial measures.</p>
<h2 style="text-align: justify" id="strong-how-are-stablecoins-affecting-financial-stability-strong"><strong>How Are Stablecoins Affecting Financial Stability?</strong></h2>
<p style="text-align: justify">According to FSOC, stablecoins currently lack a federal regulatory framework, raising concerns about their transparency and market size. The report indicated that these digital assets are particularly vulnerable to liquidity challenges, especially in the absence of robust risk management practices. The Council emphasized, “Stablecoins face significant risks due to market concentration and a lack of transparency.”</p>
<h2 style="text-align: justify" id="strong-what-are-the-regulatory-gaps-in-cryptocurrency-strong"><strong>What Are the Regulatory Gaps in Cryptocurrency?</strong></h2>
<p style="text-align: justify">The FSOC report also highlights that the cryptocurrency market poses substantial risks to the U.S. financial system. Many cryptocurrency entities do not adhere to existing financial regulations, heightening the risk of fraud. The Council urged Congress to establish laws that empower federal regulators to oversee non-security cryptocurrency spot markets effectively.</p>
<p style="text-align: justify">Key findings from the report include:</p>
<ul>
 <li>Stablecoins are not regulated at the federal level, creating risks.</li>
 <li><a href="https://en.bitcoinhaber.net/usdt-overtakes-visa-in-transactions" data-wpel-link="internal" rel="noopener noreferrer nofollow">Tether</a>‘s <a href="https://en.bitcoinhaber.net/tether-ascends-to-top-10-bitcoin-holders-with-strategic-withdrawal" data-wpel-link="internal" rel="noopener noreferrer nofollow">USDT</a> dominates the market, necessitating close monitoring.</li>
 <li>Regulations at the state level are insufficient for stablecoins.</li>
 <li>Cryptocurrency companies often evade compliance, raising fraud risks.</li>
</ul>
<p style="text-align: justify">U.S. Treasury Secretary Janet Yellen noted that while innovations like artificial intelligence and cryptocurrencies can improve efficiency, they also introduce new financial and cyber risks. FSOC has underscored the urgent need for a comprehensive regulatory framework governing stablecoin issuers and the broader cryptocurrency market.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/fsoc-identifies-financial-threats-from-stablecoins" data-wpel-link="internal" rel="noopener noreferrer nofollow">FSOC Identifies Financial Threats from Stablecoins</a></h5>

FSOC Identifies Financial Threats from Stablecoins

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