FSB Chair Klaas Knot highlighted the risks that arise from the intertwining of crypto and traditional finance, noting a potential tipping point approaching. The advent of crypto ETFs and stablecoins is a key factor, prompting systemic risk concerns.
The total market cap of stablecoins exceeds 251 billion USD, affecting US Treasury yields by lowering them by 2–2.5 basis points due to inflows. The Senate has passed the GENIUS Act to provide better regulation for stablecoin markets.
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