Top US regulators say crypto poses financial stability risks

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — Top regulators are recommending a series of new safeguards to ensure that a growing and unregulated cryptocurrency market doesn’t imperil U.S. financial stability. Regulators are calling on Congress to pass legislation that would address the systemic risks caused by the growth of stablecoins, which are a form of cryptocurrency pegged to the price of another financial asset, like the U.S. dollar or gold. Recent volatility in the cryptocurrency market, especially in stablecoins, has made regulators particularly wary about the need for regulation as usage of the digital asset continues to grow. Members of the Financial Stability Oversight Council met Monday.