Regulation
US Regulators Warn About Risks of Deeper Crypto-Wall Street Ties
- FSOC: FTX collapse had minimal impact on mainstream finance
- Watchdogs say risks may grow as entanglements increase
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The top US financial regulators are worried about the prospect of deeper ties between digital-asset firms and Wall Street.
The Financial Stability Oversight Council said Friday that interconnections between crypto firms and traditional financial institutions remain limited. However, entanglements could rapidly increase and put the broader system at risk, they warned in an annual report.