US Council Urges Congress for Stablecoin Oversight Amid Stability Concerns
The Financial Services Oversight Council (FSOC) has called for increased regulation of stablecoins, citing risks to financial markets due to a lack of transparency and reserve management standards. The FSOC's 2024 Annual Report urges the US Congress to establish a regulatory framework for stablecoins, highlighting concerns over market dominance and potential economic instability. Tether, the leading stablecoin, faces scrutiny for its lack of transparent audits, raising fears of market disruption. The FSOC warns it may take further action if legislation is not enacted.