The Financial Stability Oversight Council (FSOC) has raised concerns about stablecoins, digital assets designed to maintain stable value by pegging to fiat currencies. FSOC's report highlights potential systemic risks that these coins could pose to the traditional financial infrastructure if left unregulated.

The council underlines that stablecoins, despite their advantages like reduced transaction costs and speed, also bring inherent risks such as counterparty credit risks and operational challenges. They stress the importance of developing regulatory frameworks to address these vulnerabilities in the crypto ecosystem.

FSOC is keen on ensuring that the adoption of stablecoins doesn't destabilize the financial landscape. They call for collaboration between regulatory bodies to implement policies ensuring safe integration of stablecoins into the global financial system. It's imperative to act proactively to prevent potential disruptions from escalating into broader financial threats.