The Financial Stability Oversight Council (FSOC), comprising major U.S. financial regulators, emphasized the need for Congress to pass legislation to effectively manage the risks associated with cryptocurrencies. The FSOC's annual report highlighted the necessity for laws that specifically define and address crypto spot markets and stablecoins. The Council's recommendations aim to provide federal financial regulators with explicit rulemaking authority over non-security crypto-assets and establish a comprehensive framework for stablecoin issuers, focusing on market integrity, investor and consumer protection, and payment risks. Despite these recommendations, the uncertainty remains as to whether Congress will act, with two relevant bills currently before the House of Representatives still pending a Senate vote.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
