The Financial Stability Oversight Council (FSOC) is kinda worried about crypto stuff, and they’re telling Congress to make some rules. They just released this big report on Thursday, saying we need more control over certain crypto things and stablecoins.
In the report, they talk about 14 money problems and give ideas to make our money system better. For crypto, they’re like, “Watch out for wild price changes, too much borrowing, and things going wrong with crypto platforms.”
Oh, and they’re also worried about some risks, like too many people owning one type of crypto, hackers messing things up, and some crypto places not following the rules.
This report comes after a crazy year for crypto. The founder of FTX, Sam Bankman-Fried, got in trouble for fraud. And the boss of Binance, CZ, got in trouble for not playing by the money rules and had to step down.
Then, the IRS, the tax people, are after FTX for a crazy amount of money, like $24 billion! That’s a lot, and it might mess up getting money back for people who lost it when FTX went bust.
Binance, with a new leader named Richard Teng, did something new to make things safer. They agreed so people can keep their crypto money safer, away from the main exchange.
The head money person in the U.S., Janet L. Yellen, says our money system is tough, but there are still some problems. She says the FSOC is working hard to make things stronger and keep an eye on any issues.
But here’s the thing – Congress is having a tough time agreeing on how to deal with crypto. There’s a lot of arguing, and it might take a long time before they make any new rules for crypto. It’s like a big winter of arguing about money stuff.