Financial Stability Group Warns of Stablecoin, DeFi Risks in Annual Report

Posted on by American Coins & Gold

Financial Stability Group Warns of Stablecoin, DeFi Risks in Annual Report
The Financial Stability Oversight Council is still waiting for Congress to take action on cryptocurrencies, in particular stablecoins, before it will decide if it needs to take action.While FSOC punted on whether the group would take any specific crypto-related actions, the annual report published Friday highlighted concerns regulators have around stablecoins and the broader cryptocurrency market. The possibility that some stablecoins might not be fully backed, or are unable to maintain a peg, were two key issues mentioned in the report.“The reserves of these stablecoins, however, may not be subject to rigorous audits and the quality and quantity of collateral…