Annual Report 2019 of Financial Stability Oversight Council

In its report the council identified digital assets and stablecoins as major areas for concern, urging closer scrutiny of existing laws and a review of new products in the blockchain space. Calling for closer regulation of digital assets, the report says:“The council recommends that federal and state regulators continue to examine risks to the financial system posed by new and emerging uses of digital assets and distributed ledger technologies.” The Council further states, “ Financial regulators should review existing and planned digital asset arrangements and their risks, as appropriate. These include risks to financial stability, including via both direct and indirect connections with banking services, financial markets, and financial intermediaries; risks to consumers, investors, and businesses associated with potential losses or instability in market prices; illicit financing risks; risks to national security; cybersecurity and privacy risks; and risks to international monetary and payment system integrity.”

*Note- document is too large to upload, but can be accessed at this link: https://home.treasury.gov/system/files/261/FSOC2019AnnualReport.pdf