The Financial Stability Board (FSB) has issued a warning that the increasing interconnectedness between the cryptocurrency market and traditional finance could pose significant risks to the overall stability of the financial system. According to Chair Klaas Knot, this connection is growing rapidly due to factors like the rise of exchange-traded funds (ETFs) offering exposure to crypto assets through traditional brokerage accounts and stablecoins holding government securities. 📚 This interconnectedness presents a challenge as sudden crypto market downturns could trigger forced selling by institutions holding traditional assets, potentially impacting financial markets and causing wider economic turmoil. #CryptoMarket #SystemicRisk