Systemic risk and digital assets
The impact of FTX's collapse may be largely restricted to the digital asset industry, but one effect the crisis had outside of the space was to put the concept of systemic risk back onto the agenda.
Latest Financial Stability Oversight Council News
FTX or no FTX, more exchange regulation was always coming
The collapse of FTX will likely lead to more regulation and scrutiny, with the prominence of digital asset exchanges and the public's lack of understanding of the space contributing factors.
Janet Yellen-led group: Digital assets could threaten financial stability if not regulated
The FSOC published a report as part of its follow-up on Biden’s executive order on digital assets, calling for Congress to appoint one regulator for the sector.
‘Regulate stablecoins or we will,’ FSOC tells US Congress
The Financial Stability Oversight Council’s 2021 report points out that digital assets and the associated distributed ledger technology present the opportunity to promote innovation and further modernization.