November 27, 2022

US regulators called for increased monitoring of crypto assets and stablecoins

Heads of leading US financial regulators, including the US Treasury Secretary and Fed Chairman, called on government to control the risks associated with crypto assets.

The recommendation appeared in the annual report,published by the Financial Stability Oversight Board (FSOC). The Board includes the Chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, the Chairman of the Commodity Futures Trading Commission (CFTC), Heath Tarbert, US Treasury Secretary Steven Mnuchin and the chairman Federal Reserve System Jerome Powell.

“The Council recommends that federal regulatorsand state regulators continued to study the risks to the financial system arising from the use of digital assets and distributed ledger technology, ”the report said.

According to a new report, the risks of “existing andplanned digital asset agreements "could jeopardize the stability of the financial industry" through both direct and indirect links with banking services, financial markets and intermediaries. "

The report also mentioned “risks toconsumers, investors and enterprises associated with potential losses or instability of market prices ”, as well as“ financial risks associated with violation of laws; risks to national security; cybersecurity and confidentiality risks, as well as risks to the integrity of the international monetary and payment systems. ”

In January 2018, Mnuchin announced that the Financial Stability Oversight Board formed a working group to discuss cryptocurrencies with other U.S. regulatory authorities.