FSOC urges Congress to implement stablecoin regulations

Need for regulation of stablecoins is urgent: The FSOC identified that many stablecoin issuers, including Tether, lack sufficient risk control frameworks. With Tether dominating the market at 70%, this highlights critical concerns regarding stability, indicating that regulation is vital for mitigating risks in the U.S. financial system.

Legislative efforts are underway for regulation: Currently, U.S. lawmakers are evaluating the Payment Stablecoins Act. This proposed legislation aims to establish a cohesive regulatory framework for stablecoin issuers, promoting transparency and accountability, and ensuring the financial system remains robust and secure.