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A new report by the intragovernmental group has revealed that Congress still needs to pass legislation to address concerns the Financial Stability Oversight Council (FSOC) has about crypto.
The report published by FSOC, a financial stability watchdog composed of the heads of most major U.S. financial regulators, takes a look at the past year in climate, banking, cybersecurity, artificial intelligence and other issues. As it has in years past, crypto received a section.
The council is recommending that Congress pass legislation defining and addressing crypto spot markets, as well as stablecoins and urges them to do so. These are the same recommendations FSOC had at the end of 2022, the report noted.
The House of Representatives has two bills addressing these issues that have enough support to be moved out of the committee, however, it’s uncertain whether these bills will make it to a Senate vote. Despite this, FSOC remains prepared to consider steps available to it to address risks related to stablecoins in the event comprehensive legislation is not enacted.
The report also highlighted vulnerabilities like price volatility, leverage within the industry, cybersecurity, and other risks to investors and financial markets. Additionally, the report mentioned that stablecoins have been a long-standing concern for finance regulators in the U.S.
