Klaas Knot, the outgoing chief of the Financial Stability Board, has a message for the world finance World: Keep Your eyes On Stablecoins. Speaking at a recent event in Madrid, Knot said that we are moving towards a point where cryptographic markets and traditional finances are so intertwined that a crack in one could shake the other.
The crypto sneaks into the dominant current
Knot does not panic, but he is really worried. Right away,, crypto Does not constitute a direct threat to global financial stability. But The walls separating crypto the rest of the financial system are get diluent. And fast.
What happened to Crypto today?
1. FSB warns the crypto as an “tilting point” approaches with traditional finance
• Klaas Knot, outgoing president of the Financial Stability Board (FSB), warned that the crypto was approaching a critical integration threshold with traditional finance.
• He said that … pic.twitter.com/h1kjeclvql– Gigi (@seagullgigi) June 12, 2025
Take stablecoins. These digital assets are fixed to real currencies, generally the dollar, and are often supported by us Treasury. When money extends in or out of these parts, it can change demand on the bond market. This movement is not only digital – it can move real prices and create volatility in places that central banks really care.
FNBs are a bridge for everyone
Another piece of the puzzle? ETF Crypto. They do it dead Simple to invest in Bitcoin or Ethereum without ever touching A cryptographic wallet. It may seem ideal for accessibility, but it also means that more investors are exposed to crypto than ever. Some of these investors are retail merchants. Others are massive institutions. If panic never strikes, the chain reaction will not remain contained in the crypto.
This is what knot calls The risk of “tilting point”. We are not there yet, but we get closer.
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Treasury bills are in the reticle
Stablecoin issuers are not only sitting on heaps of money. They to use their reserves at buy short -term state obligations, especially American treasure. It may seem harmless, but the flows can be large enough to move yields.
A study Since The bank for international establishments has revealed that significant stages in the floors can slightly reduce bond yields, while big outings TO DO the opposite. In a market where a basic point is important, this is enough to trigger alarms. Training effects could spread in everything, interest rates in loan conditions.
Legislators move into
In the WElegislators are already trying To bring stablecoins under federal supervision. The engineering law adopted the Senate with strong support and heads for the chamber. It aims to further regulate the stablescoins supported in dollars as traditional financial products.
Europe also displays its goal. The European Central Bank has warned that stablecoins need stronger ruleswhere they could become a weak point in the financial system.
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Change custody at the FSB
Knot ends his mandate on June 30, the governor of the Bank of England, Andrew Bailey, is expected to take over. Bailey should keep Press global rules that can tame crypto without crushing innovation. It will not be easy, but it is clearly on the agenda.
Why all account
Basically, it is risk management. The closer the crypto gets closer to traditional finance, the more important it becomes to understand what could go wrong. Stablecoins and FNB are no longer secondary projects. These are levers that can move global markets.
Knot’s message is simple: don’t wait for a crisis to connect the points. The time to act is before the tilting point.
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Main to remember
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FSB chief Klaas Knot warned that stablecoins could present a growing risk for global financial stability as they become more integrated into traditional markets.
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The activity of the stablescoin influences the real world markets like American treasury bills, which raises concerns about volatility and involuntary consequences.
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FNB Crypto increase exposure to digital assets between retail and institutional investors, deepening the potential risk of contagion.
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Regulators in the United States and Europe put pressure on stricter monitoring, with legislation such as the Genius Act and proposals supported by the ECB that gain ground.
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While Klaas’ knot descends, the new FSB chief Andrew Bailey should continue the thrust for global cryptography regulations.
The head of the post FSB Klaas Knot Flags Stablecoins as risk for global finance appeared first on 99Bitcoins.
