Global Watchdog: Crypto Close to Fully Merging with Financial System
Crypto’s growing ties to traditional finance are raising global concerns, prompting the Financial Stability Board (FSB) to call for urgent regulatory reforms.
In his final speech as FSB Chair, Klaas Knot warned that crypto may soon pose systemic risks, especially as barriers to retail access fall and stablecoin issuers hold large volumes of U.S. Treasuries. He stressed that while innovation in digital assets stems from inefficiencies in cross-border payments, poor oversight could amplify financial contagion.
Knot urged jurisdictions to strengthen global cooperation and swiftly adapt regulatory frameworks to keep pace with crypto’s rapid evolution.
Clever Robot News Desk 14th June 2025
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