The Financial Stability Board (FSB) rings the alarm on the growing risks of the cryptography sector, warning that the interns with traditional finances are approaching a critical threshold.
Speaking Thursday in Madrid, the outgoing president of the FSB Klaas Knot said that although the crypto does not yet pose a systemic risk for traditional finance, this status may not last much longer. “We can approach a tilting point here,” he said.
Knot noted that the obstacles to entry for retail investors have “decreased considerably”, in particular with the introduction of negotiated funds in exchange for crypto. FNB Crypto allow investors to expose themselves to digital assets without having to manage private keys, use cryptographic wallets or navigate exchanges.
Knot added that another key concern is the Stablescoin market. He noted that issuers now hold large amounts of American Treasurys, which increases the links between crypto and traditional finance. “This is a segment that we must clearly watch closely,” he added.
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Stablecoins are integrated into financial systems
Stablecoins – Digital assets set for fiduciary currencies such as the US dollar – are increasingly integrated into financial systems. According to Defillama data, total market capitalization of Stablecoins is currently at more than $ 251 billion.
A recent research document from the International Settlements Bank for International Settlements has analyzed the growing impact of stabbed on traditional finances, focusing on their influence on the yields of the short -term American treasury.
By using daily data from 2021 to 2025 and an instrumental variable method, the document found that the reversals of stablecoin three months of three months of 2 to 2.5 base points within 10 days, while outputs increase the yields from 6 to 8 base points.
These effects are concentrated in short -term deadlines, with a minimum impact on longer -term connections. Among the issuers, the USDT (USDT) has the largest effect, followed by the Circle USDC (USDC), confirming the influence of stablecoins on the treasury markets.
Knot, who is also president of the Dutch central bank, of Nederlandsche Bank, will leave the two roles on June 30. The governor of the Bank of England Andrew Bailey should succeed him to the FSB, while the Netherlands have not yet appointed a replacement.
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US Senate advances the act genius
On June 11, the US Senate voted 68 to 30 to advance the guidance and the establishment of national innovation for American stablecoins, or Genius Act, a keystrolecoin bill to establish a regulatory clarity for the sustained digital assets of a dollar. The vote opens the way to a debate on the floor and a final vote before the bill moved to the House of Representatives.
If it is adopted, the bill would create a national framework for the issue of Stablecoin, stimulating the global competitiveness of the American digital asset industry.
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