The FSOC has issued a warning in its 2024 annual report regarding the stability of stablecoins. It highlighted that these digital assets are highly susceptible to 'runs' in the financial system, especially in the absence of effective risk management protocols.

Stablecoins, due to their pegged value to traditional currencies, are popular in the crypto market. However, the FSOC insists that the lack of adequate regulations and governance could pose a substantial threat to the broader financial landscape.

The report calls for rigorous oversight and risk management standards to be established to mitigate potential risks associated with stablecoins, ensuring they do not disrupt financial stability.