Federal Deposit Insurance Corporation

Treasury officials believe congressional action is “highly appropriate” this year to address the risks that the latest financial stability report underscores.

By Alan W. Avery, Pia Naib, and Deric Behar

On May 9, 2022, the Board of Governors of the Federal Reserve System (FRB) published its semi-annual Financial Stability Report (Report). The Report, which covers a variety of topics, briefly repeated some familiar warnings regarding digital assets and potential risks to the wider financial system. In particular, the FRB expressed concern about funding risks posed by stablecoins.