The US stablecoin bill is about to be released! Outgoing FSB chairman warns: cryptocurrency is approaching the systemic risk threshold.

The outgoing Financial Stability Board (FSB) Chairman Klaas Knot has stated that the risks posed by crypto assets could soon pose a serious threat to the financial system. He said in Madrid on Thursday, "At the FSB, we have long believed that cryptocurrencies do not pose a systemic risk, but recent developments suggest we may be approaching a tipping point." He emphasized that stablecoin issuers "now hold large amounts of U.S. Treasury bonds - an area we must closely monitor." Stablecoins are the focus of major legislation in the U.S. Congress, marking the first step in the crypto industry's support for new regulations on digital assets. It is understood that the U.S. Senate is pushing forward with stablecoin legislation supported by both the crypto industry and the Trump administration, with the bill expected to be voted on as early as next week. The core provisions of the legislation require stablecoin issuers to hold 100% equivalent reserves in U.S. dollars, including short-term U.S. bonds or regulated cash-like assets. Supporters believe this will drive stablecoins pegged to the U.S. dollar to become mainstream payment tools. As the legislative process accelerates, the game concerning the future of the digital dollar has entered a critical stage. Several policymakers at the European Central Bank have expressed concerns about the risks associated with stablecoins. In its Financial Stability Review released in May, the European Central Bank also highlighted the risks posed by stablecoins and other crypto assets, particularly as valuations continue to rise and the connections between the digital asset ecosystem and traditional finance become increasingly tight. Stablecoins are a special type of cryptocurrency. Unlike Bitcoin or meme coins whose value depends on market sentiment, these digital tokens are supposed to maintain a value of 1 U.S. dollar. Knot, who also serves as President of the Dutch Central Bank, stated, "The barrier for retail investors has significantly lowered, especially after the launch of cryptocurrency ETFs - the connection with the traditional financial system continues to strengthen. The crypto ecosystem will continue to evolve, and so must our regulatory framework." Knot's term at the Dutch Central Bank and FSB will end on June 30th. Bank of England Governor Andrew Bailey will take over as FSB Chairman.