- The crypto markets have grown significantly in the past decade.
- The ESRB has warned that the unchecked growth of the nascent market could pose a systemic risk.
- The agency has called for greater oversight of “contagion channels.”
The crypto markets have grown significantly in the past decade from a total market cap of approximately $1.5 billion in May 2013 to nearly $3 trillion in November 2021. The metric sits at about $1.11 trillion per CoinMarketCap data at the time of writing due to the bear market rout.
With this growth, the industry has become increasingly intertwined with the traditional finance sector. The European Systemic Risk Board has now warned that the crypto markets could pose a risk to financial stability if allowed to grow unchecked.
ESRB Calls for Greater Supervision of “Contagion Channels”
In a report released on Thursday, May 25, the ESRB noted that despite a turbulent year…
