Systemic Risk Framework

Definition ∞ A systemic risk framework is a set of policies and regulations designed to prevent the collapse of an entire financial system due to the failure of one or more major institutions. It aims to identify, monitor, and mitigate interconnected risks across markets. In digital assets, this framework seeks to address potential contagion from large crypto entities. It is crucial for financial stability.
Context ∞ The discussion around a systemic risk framework for digital assets is a high priority for global financial regulators. The rapid growth and interconnectedness of the crypto market have raised concerns about its potential impact on broader financial stability. News frequently covers proposals from international bodies and national governments to develop and implement such frameworks, focusing on stablecoins and large centralized platforms.