FSB Chair Warns of Systemic Risk from Crypto Integration

The Financial Stability Board (FSB) chair, Klaas Knot, warned of rising systemic risks as cryptocurrencies merge more deeply with traditional finance systems. Speaking at the Bank of Spain conference, he highlighted how the introduction of cryptocurrency ETFs and significant U.S. Treasury bond holdings by stablecoin issuers have lowered barriers for retail investors, resulting in an acceleration of systemic risk accumulation.