The Financial Stability Oversight Council in the US published its annual report and urged American lawmakers to create crypto laws to mitigate risks.
The Financial Stability Oversight Council is an authority that identifies risks to the stability of the US economy. Created in 2010, it annually publishes a report on its findings and suggestions. The regulator has several heads of US regulatory institutions as members. The council’s latest annual report has a detailed section on crypto. Further, the report has mentioned the need for crypto laws in the US.
The council has recommended Congress create effective crypto legislation to tackle risks arising from the sector. It said the legislation should cover various aspects of crypto, including spot markets and stablecoins. Meanwhile, the report has sections on cybersecurity, climate, artificial intelligence, and banking as well.
“The Council urges Congress to pass legislation that provides federal financial regulators with explicit rulemaking authority over the spot market for crypto-assets that are not securities. Congress should also pass legislation that would create a comprehensive prudential framework for stablecoin issuers that would also address the associated market integrity, investor and consumer protection, and payment risks,” said the report.
Crypto legislation in the US has seen some progress in 2023, but the bills haven’t passed into law. The lack of consensus on crypto laws has led to regulatory uncertainty in the country. On the other hand, regions like the European Union have transparent laws on digital assets, called the Markets in Crypto-Assets Act.
A few months back, the European Union stressed on crypto regulation and mentioned the importance of global laws. Countries in Europe, for instance Germany, have also witnessed regulators publishing reports on crypto regulation worldwide. An official of the German Federal Financial Supervisory Authority published it recently.
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