Systemic Risk Oversight

Definition ∞ Systemic Risk Oversight involves the continuous monitoring and evaluation of potential threats to the stability of the entire financial system. For digital assets, this includes assessing how the growth and interconnectedness of crypto markets could impact traditional finance. Regulators aim to identify and mitigate risks that could lead to widespread financial disruption.
Context ∞ News frequently reports on international financial bodies and central banks increasing their Systemic Risk Oversight of digital asset markets. Concerns about the size and volatility of certain digital assets, particularly stablecoins, drive these efforts. The objective is to develop policy responses that safeguard global financial stability as digital assets gain prominence.