FSB Flags Mounting Crypto Risks as Stablecoins Tighten Grip on Finance
The Financial Stability Board is growing increasingly uneasy about crypto’s expanding footprint in global finance, cautioning that the lines between digital assets and traditional markets are blurring faster than expected.
During remarks in Madrid, Klaas Knot—soon to exit his role as FSB chair—warned that while crypto doesn’t yet endanger the broader financial system, that could soon change. With easier retail access through ETFs and rising institutional exposure, the sector may be approaching a critical threshold.
A major focus of concern is the stablecoin market. Issuers now hold vast reserves of U.S. Treasurys, tightening the link between digital assets and mainstream finance. Knot emphasized that this…
