US FSB Chair: Cryptocurrency Reaching Systemic Risk "Tipping Point," May Pose Threat to Global Financial System

Klaas Knot, the outgoing chair of the U.S. Financial Stability Board (FSB), has issued a stern warning, stating that the cryptocurrency market may be approaching a "tipping point" and could pose systemic risks to the global financial system. He remarked, "Stablecoin issuers currently hold a significant amount of U.S. Treasury bonds. We must closely monitor this area." "The threshold for retail users has dropped significantly, especially following the launch of cryptocurrency ETFs. The connections with the traditional financial system continue to deepen." Knot emphasized the necessity of proactive regulation, noting, "The crypto ecosystem will continue to evolve, and so must our regulatory framework."