Klaas Knot, outgoing chairman of the Financial Stability Board (FSB), issued a warning regarding the cryptocurrency market, highlighting the possibility of significant systemic risks to the global financial system. He cited concerns about stablecoin issuers holding substantial U.S. Treasury bonds as potential risk factors. Furthermore, Knot observed that retail investor entry into the crypto space has become more accessible following the introduction of cryptocurrency ETFs, which he believes strengthens connections between the crypto ecosystem and traditional finance. He emphasized the need for proactive regulation, stating, ‘The crypto ecosystem will continue to evolve, and our regulatory framework must evolve with it.’