Please try another search
Cryptocurrency Pose Risks to Financial Stability: Top US Regulators
Top authorities suggested a number of new protections on Monday to make sure that the stability of the US financial system is not jeopardized by a developing and unregulated cryptocurrency industry.
Regulators asked Congress to enact legislation to address the systemic risks brought on by the rise of stablecoins, a type of cryptocurrency tied to the price of another financial asset, such as the US dollar or gold, as one of their seven main recommendations.
Regulators are particularly cautious about the need for regulation as the usage of digital assets continues to increase due to recent volatility in the cryptocurrency market, particularly in stablecoins.
“The increasing popularity of stablecoins and other digital assets has raised concerns about their systemic risks, including the potential for market manipulation and price bubbles,” said acting Chairwoman of the Securities and Exchange Commission (SEC) Stephanie Avakian in a statement.
During a meeting held on Monday, members of the Financial Stability Oversight Council approved the conclusions of a 125-page study written in response to President Joe Biden’s executive order on digital assets in March.
The research also urges providing governments more authority to regulate virtual currencies and other digital assets.
As more Americans engage in cryptocurrencies, the council declared at the beginning of the year that it would concentrate its efforts on learning more about these concerns and offering suggestions.
Approximately 40 million adult Americans, or 16% of the population, have invested in cryptocurrencies, according to a Pew Research Center survey from September 2021. And 43% of men between the ages of 18 and 29 have invested in cryptocurrencies.
Treasury, according to Yellen, advises the United States to “advance policy and technical work on a prospective central bank digital currency, or CBDC, so that the country is ready if CBDC is decided to be in the national interest.”
A digital currency is being considered by more than 100 central banks worldwide, but just a few have actually introduced one.
The post Cryptocurrency Pose Risks to Financial Stability: Top US Regulators appeared first on Coin Edition.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.