In a major statement this week, the Financial Stability Board (FSB) warned that cryptocurrencies have reached a “tipping point” and may soon pose systemic risks to traditional finance.
Speaking at a conference in Brussels, the FSB highlighted how growing stablecoin use, cross-border DeFi platforms, and unregulated token issuance could overwhelm existing regulatory frameworks if left unchecked.
“The window to act is narrowing,” said FSB officials, pointing to recent banking integrations and institutional exposure to digital assets.
The report urges global regulators and central banks to accelerate policy coordination and prepare for scenarios where crypto markets spill over into TradFi.This follows ongoing discussions around the Genius Stablecoin Bill in the U.S., and increasing efforts in the EU to tighten oversight on DeFi protocols and tokenized assets.
