The Financial Stability Oversight Council (FSOC), which is made up of the heads of major U.S. financial regulators, released its annual report on Thursday, reviewing the past year on climate, banking, cybersecurity, artificial intelligence and other issues.

According to the report, it is recommended that the U.S. Congress pass legislation to define and address the crypto spot market and stablecoins. The report states that these recommendations are the same as those made by the FSOC at the end of 2022.
The report mentions this year's Curve Finance hack, which lost $50 million to the protocol. While Curve later recovered 73% of the money, the report said one of the main concerns was that CRV-backed loans could collapse due to the loss of collateral.
"The Financial Stability Oversight Council urges Congress to pass legislation that would give federal financial regulators explicit rule-making authority over spot markets for non-securities cryptoassets," the report added. Congress should also pass legislation to create a comprehensive prudential framework for stablecoin issuers to address related issues of market integrity, investor and consumer protection, and payment risk. In the absence of comprehensive legislation, the Commission is still prepared to consider measures to address the risks associated with stablecoins. ”（CoinDesk）