Risks from stablecoins and crypto: The Financial Stability Oversight Council’s 2024 report highlights significant risks from stablecoins and cryptocurrencies. The lack of federal regulatory framework raises concerns about market size and transparency, posing threats to financial stability. Especially with Tether’s USDT, which holds 70% of the global stablecoin market.

Call for federal regulation: Many cryptocurrency firms lack compliance with US regulations, resulting in increased fraud and manipulation risks. US treasury secretary Janet Yellen supports creating comprehensive federal regulations for stablecoin issuers and a legal framework for cryptocurrencies to manage emerging financial and CYBER risks.