A Backdoor Regulatory Option Haunts U.S. Crypto

The systemic-risk watchdog’s most recent mention of virtual assets came in its annual report last month, which again highlighted crypto as a potential emerging hazard to the health of U.S. finance. The regulators are especially concerned over stablecoins, the tokens matched to the value of steady assets such as the U.S. dollar, which are generally used as a means to buy and sell volatile digital assets. On the surface, the council’s calls for crypto legislation seem supportive of lawmakers’ aims. But the report again added a kind of warning. “The council remains prepared to consider steps available to it to address risks related to stablecoins in the event comprehensive legislation is not enacted,” it said. Basically: If you don’t act soon, we may.