Financial Stability Oversight Council: Stablecoins remain a latent risk to financial stability

The US Financial Stability Oversight Council (FSOC) released its annual report yesterday, in which it noted that stablecoins continue to pose a latent risk to financial stability, as they are highly vulnerable to runs in the absence of proper risk management standards. The FSOC said the stablecoin market is highly concentrated, with one company holding around 70% of the total market capitalization of the industry. Although the FSOC did not specify which company, it warned that if the market dominance of "the company" continues to expand, failure could disrupt the crypto asset market and have a ripple effect on the traditional financial system. According to CoinMarketCap data, the current total market capitalization of stablecoins is about 2054.8 billion US dollars, of which the market capitalization of Tether is about 136.8 billion US dollars, accounting for about 66.3%.