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Top US Regulator Says Cryptocurrencies Pose Risks to Financial Stability

Started by Epoch-Times-Bot, Oct 04, 2022, 01:15 PM

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Epoch-Times-Bot

Oct 04, 2022, 01:15 PM
Top US Regulator Says Cryptocurrencies Pose Risks to Financial Stability

The Financial Stability Oversight Council (FSOC) issued a report on digital assets like cryptocurrencies, warning about the dangers posed by such instruments.
"Crypto-asset activities could pose risks to the stability of the U.S. financial system and emphasizes the importance of appropriate regulation, including enforcement of existing laws. It is vital that government stakeholders collectively work to make progress on these recommendations," the Oct. 3 report states. Many cryptocurrencies do not have the necessary risk controls to protect against "run risk or to help ensure that leverage is not excessive."
Despite the distributed nature of crypto asset systems, operational risks can arise due to the concentration of key services or from vulnerabilities linked to the distributed ledger technology on which these assets rely, warned the FSOC’s "Report on Digital Asset Financial Stability Risks and Regulation."...

Source: Top US Regulator Says Cryptocurrencies Pose Risks to Financial Stability

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