8.21 AI Daily Report Fed Focuses on Stablecoin Reshaping of Encryption Regulatory Landscape

1. Headlines

1. The Federal Reserve's meeting minutes focus on stablecoins, attracting market attention.

The minutes of the Federal Reserve's July meeting were released on August 21, in which the term "stablecoin" was mentioned multiple times, indicating that stablecoins have become a focal point of Federal Reserve policy discussions. The minutes noted that with the recent passage of the "GENIUS Act," the use of payment stablecoins may increase, potentially having a profound impact on the financial system.

The meeting minutes revealed that participants believe stablecoins can help improve the efficiency of payment systems, but may also increase the demand for the underlying assets that back them, such as U.S. Treasury bonds. U.S. Treasury Secretary Basent stated that stablecoins will drive global dollar usage and increase the demand for U.S. Treasury bonds.

At the policy level, Senator Cynthia Lummis stated that the crypto market structure bill will be submitted to President Trump before Thanksgiving, clarifying the regulatory division of responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Goldman Sachs, in its latest research report, pointed out that it is too early to say that stablecoins disrupt traditional finance, but is optimistic about companies like etc. in the innovation of stablecoin payments.

The frequent emergence of the topic of stablecoins reflects the Federal Reserve's high regard for their development prospects and potential impacts. In the future, regulatory policies for stablecoins may become a key factor influencing the development of the cryptocurrency industry.

2. Is the XRP spot ETF about to be approved? Whales are frantically accumulating 900 million coins to help break through key levels.

Driven by optimistic expectations that the SEC may approve the XRP spot ETF within the next two months, the price of XRP rebounded by 3.18% on Wednesday, closing at $2.9530. On-chain data shows that whales are accumulating on a large scale, buying 900 million XRP within 48 hours, setting the largest record since June 2025.

Cryptocurrency lawyer Bill Morgan and industry observers warn that two significant events are emerging: the SEC's final decision on multiple XRP spot ETF applications, and Ripple's licensing application with the U.S. national bank, both of which are expected to occur in October. Once approved, institutional funds are expected to flow significantly into the XRP market.

Analysts point out that the XRP price has encountered multiple resistances in the $2.95-$3.00 range. If it can break through effectively, it will open up greater upward potential for the market. However, Bitcoin is facing outflow pressure due to the uncertainty of the Federal Reserve's policy ahead of the Jackson Hole symposium, which may limit the upward momentum of the cryptocurrency market in the short term.

The approval or disapproval of the XRP spot ETF will directly affect its future development prospects. Investors need to closely monitor the direction of regulatory policies and institutional capital movements.

3. The Wormhole Foundation joins the StarGate bidding war, with bids potentially overwhelming LayerZero.

The cross-chain protocol StarGate's native token STG saw a strong rebound of over 10% on August 20, reaching a peak of $0.182. This surge directly stemmed from the Wormhole Foundation's official announcement of its intention to intervene and engage in a bidding war with LayerZero for the StarGate protocol.

Wormhole accuses LayerZero of severely undervaluing the StarGate protocol with its current bid of $110 million, and demands a suspension of the snapshot vote originally scheduled to end on August 24 for 5 business days to improve the bidding process and protect the interests of STG holders.

Analysts believe that the addition of the Wormhole Foundation will drive up the final sale price of the StarGate protocol, benefiting the rights of STG token holders. However, it may also trigger follow-ups from other foundations, intensifying the bidding war.

The StarGate protocol, as a leading cross-chain bridge service, has its ownership issue concerning the future development direction of the entire cross-chain ecosystem. The outcome of the bidding war will not only determine the price trend of the STG token but also affect the overall landscape of the cross-chain ecosystem.

4. The theory of crypto scams triggers a sense of crisis in the industry, with a "disillusionment" sentiment present at the TOKEN2049 conference.

At the TOKEN2049 conference in Singapore, the entire industry of entrepreneurs, investors, and other participants was overshadowed by the public consensus on "crypto scams," reaching a peak of industry malaise. Unlike previous years, there was little festive atmosphere at this conference, replaced instead by a sense of "disillusionment."

Industry insiders believe that the current predicament of the industry is not only due to the external environment but also because of the phase death of its underlying logic. The "founder project - VC packaging - user growth hacking - listing on exchanges - exit and lie flat" model of the past five years is coming to an end.

Financing for entrepreneurial projects is difficult, and exchanges and investors find it hard to distinguish between real users and value, leading to a lack of innovative support in the industry. Some once-popular sectors, such as full-chain gaming, NFTs, and We social, are also being debunked.

However, the combination of AI and cryptocurrency is seen as a new opportunity. At the same time, some projects with a solid community base, such as Pirate Nation and Small Brain, are also attracting attention.

The TOKEN2049 conference highlights the industry's growing pains, reflecting that cryptocurrency is at an important turning point. Whether it can regain growth momentum in the future will determine the long-term prospects of the industry.

5. The Federal Reserve's meeting minutes reveal a hawkish-dovish divide, with uncertainties surrounding the prospect of a rate cut in September.

The minutes of the Federal Reserve's July meeting show that officials had differing views on the prospect of a rate cut in September. A "Fed mouthpiece" pointed out that the overall sentiment of the meeting was hawkish, at least inconsistent with market expectations. However, after the employment report was released on August 1, more officials showed an open attitude towards a rate cut in September.

The minutes also revealed that some officials believe the inflation risk is greater than the employment risk, supporting the maintenance of tight policies. However, some officials are concerned that excessive interest rate hikes could lead to an economic hard landing.

Analysts point out that Powell's speech this week in Jackson Hole will set the tone for the policy direction in September. If Powell maintains a hawkish tone, the expectations for a rate cut in September will significantly decrease, putting pressure on risk assets. Conversely, if he shifts to a more dovish stance, it will support a market rally.

The uncertainty surrounding the Federal Reserve's policy outlook will continue to dominate market trends. Investors should closely monitor Powell's speeches and respond cautiously to potential policy shifts.

2. Industry News

1. The Federal Reserve's meeting minutes triggered market volatility, causing Bitcoin to drop in the short term.

After the release of the Federal Reserve's July meeting minutes, the cryptocurrency market experienced a brief fluctuation. Bitcoin briefly fell below the $114,000 mark, hitting a low of $113,600. Analysts pointed out that the minutes indicated the Federal Reserve's concerns about inflation risks outweighing employment risks, suggesting a cooling of interest rate cut expectations for September, which led to short-term profit-taking in the market. However, Bitcoin quickly stabilized and rebounded above $115,000, showing that the long-term bullish logic remains unaffected. Several institutions expect Bitcoin to potentially break through the historical high of $130,000 within the year.

2. The overheating of the Ethereum futures market has triggered selling pressure, putting short-term pressure on ETH.

Ethereum prices continue to face pressure below $4,300, having briefly fallen to $4,250 within 24 hours. Analysis indicates that an overheated futures market is the main reason. Data shows that since August, hedge fund short positions on Ethereum have nearly doubled, sharply rising from $2.3 billion on August 5 to $4.19 billion. Institutional investors are betting that Ethereum prices will maintain a downward trend. At the same time, increased exchange reserves have intensified selling pressure. However, analysts emphasize that the ETH/BTC exchange rate has held the critical support level of 0.037, indicating that Ethereum's structural strength has not yet been broken.

3. XRP focuses on ETF approval process, whales are crazily accumulating 900 million coins.

XRP price rebounded by 3.18% on Wednesday, closing at $2.9530. On-chain data shows that whales are accumulating in large quantities, purchasing 900 million XRP within 48 hours, marking the largest record since June. Analysts point out that this is related to the optimistic expectation that the SEC may approve the XRP spot ETF within the next two months. Once approved, it will help attract more institutional funds. However, in the short term, XRP still faces pressure at the key resistance level of $3. If it fails to break through effectively, it may trigger further corrections.

4. Major platform tokens lead the rally, SOL, CFX, and GT all hit new highs.

Multiple mainstream and platform tokens experienced a strong rebound on August 21. Among them, SOL saw a cumulative increase of over 50% in just two days, reaching a historic high of $191.8. Conflux(CFX) and GateToken(GT) also recorded double-digit increases, reaching new highs of $0.197 and $0.0284 respectively. Analysts believe this is related to the continuous development of the exchange ecosystem and increased user activity. It also reflects investors' preference for mainstream platform tokens. However, some analysts warn to be cautious of the risk of profit-taking.

5. On-chain data shows a significant increase in capital outflows, and Bitcoin may undergo a deep correction.

Despite Bitcoin stabilizing in the short term, on-chain data shows that the outflow pressure is intensifying. The one-year MVRV Z-Score has fallen back to neutral territory, slightly below zero. This indicates that the unrealized profits on the network have contracted compared to the one-year average level, with more supply in breakeven or loss status. Analysts point out that the key support level for Bitcoin is at the realization price of $106,000 for short-term holders. If the price falls below this level, short-term holders will be overall in a loss position, and the market faces the risk of a deeper correction.

Overall, although the Federal Reserve minutes caused short-term disturbances in the market, the long-term bullish logic of the cryptocurrency market has not changed. However, investors need to be wary of the risks of short-term profit-taking and closely monitor the defense of important support levels.

3. Project News

1. Sui ecosystem continues to make strides, XAUm becomes the first gold token asset to be launched.

Sui is a brand new layer 1 blockchain developed by engineers who have participated in projects like Ethereum and Diem. Sui adopts a novel underlying architecture design aimed at addressing the scalability and composability challenges faced by traditional blockchains.

Recently, the Sui ecosystem has made significant progress. XAUm has become the first gold token asset deployed on the Sui network. XAUm is a tokenized gold product issued by Ava X, a subsidiary of Ava Labs, with each XAUm token fully backed by physical gold. This launch marks a leap forward in XAUm's technical architecture and the scale of the supporting network.

The Sui Foundation will also allocate part of its reserve assets to XAUm, to express its recognition of the project through practical actions and further highlight the strategic position of tokenized gold in on-chain asset portfolios in the Web3 era. XAUm provides the Sui community and traditional investors with a new way to participate in the gold market. As XAUm completes its on-chain deployment and is fully integrated with the ecosystem, Sui users can conveniently access XAUm and efficiently engage in on-chain ecological interactions.

Industry insiders believe that the successful deployment of XAUm on Sui will further drive the wave of tokenization of real-world assets. Tokenized products like gold and other RWA are expected to become an important component of on-chain asset allocation, injecting new vitality into the Web3 ecosystem.

2. The Ethereum Foundation launches the "trillion-dollar security" plan phase two

The Ethereum Foundation stated that it will launch the second phase of the Trillion Dollar Security program, focusing on user experience security issues.

This phase will primarily focus on three major directions: first, collaborating with Walletbeat to establish minimum security standards for Ethereum wallets, including requirements for transparent transactions and anti-intrusion interfaces; second, addressing the blind signature issue and enhancing transaction decoding capabilities by supporting projects like Verifier Alliance(VERA); third, creating an open-source smart contract vulnerability database to help developers detect code vulnerabilities before deployment.

The Ethereum Foundation stated that as the Ethereum ecosystem continues to grow, ensuring the safety of user funds and privacy has become crucial. The "Trillion Dollar Security" plan aims to comprehensively enhance Ethereum's security from multiple aspects, such as underlying architecture and user experience, to safeguard the healthy development of the ecosystem.

Industry analysts point out that Ethereum, as a leading public chain, has security issues that are directly related to the entire cryptocurrency ecosystem. The Ethereum Foundation's actions help to enhance user confidence in Web3 and promote public awareness and acceptance of cryptocurrencies. At the same time, this plan sets a benchmark for safe development for other public chains.

3. Sui ecosystem XAUm gold token gains institutional recognition, on-chain RWA sector achieves another milestone.

Sui is a brand new Layer 1 blockchain built by the original team of the Ethereum and Diem projects. Sui adopts an innovative parallel execution architecture aimed at addressing the scalability and composability challenges faced by traditional blockchains.

Recently, the tokenized gold product XAUm issued by Ava X, a subsidiary of Ava Labs, has become the first real asset token deployed on the Sui network. Each XAUm is fully backed by physical gold and can circulate freely on the chain. The Sui Foundation will also allocate some of its reserve assets to XAUm to express its recognition of the project in a tangible way.

The successful deployment of XAUm on Sui marks another victory in the on-chain tokenization of real-world assets. Tokenized RWA products such as gold are expected to become an important component of on-chain asset allocation, injecting new vitality into the Web3 ecosystem.

Industry insiders believe that XAUm's landing on Sui highlights the institutions' preference for the RWA track. As a brand new Layer 1 public chain, Sui has unique advantages in terms of performance and security, which is conducive to attracting more high-quality assets on chain. In the future, the Sui ecosystem is expected to become an important hub for on-chain RWA products.

4. HKEX CEO: Extending trading hours requires careful consideration

At the Hong Kong Stock Exchange's mid-year results meeting in 2025, some market participants suggested extending trading hours. HKEX CEO Charles Li responded to this.

Chen Yiting stated that the Hong Kong Stock Exchange has always been committed to providing more convenience for investors and holds an open attitude towards all relevant suggestions. However, extending trading hours has a significant overall impact on the market, presents considerable challenges, and requires careful consideration, as well as soliciting opinions from all market participants.

He gave an example that if there is a mistake, there are still a few hours to fix the problem now, but if trading continues for 24 hours, there will be no room for error. It is evident that extending trading hours carries certain risks and requires weighing the pros and cons.

Analysts point out that extending trading hours has always been a hot topic in the market. Supporters believe it can increase market liquidity and attract more investors to participate; opponents worry about increased risks, which pose a significant challenge to trading systems and human resources.

Overall, extending trading hours is a complex system project that requires thorough evaluation and broad consensus in the market. The cautious attitude of the Hong Kong Stock Exchange is also based on prudent considerations, and whether it will ultimately be implemented in the future remains to be further discussed.

5. The Ethereum airdrop craze exposes hidden risks, with a potential user loss rate as high as 80%.

The recent airdrop and liquidity mining activities in the Ethereum ecosystem have driven a false prosperity. However, it has also exposed some hidden dangers.

Third-party research shows that the user churn rate can be as high as 80% after an airdrop, which is detrimental to both founders and projects. Taking Friendtech as an example, this was a previously influential and eye-catching project in the market, but after the subsequent token launch and the inability to maintain the price, all users have abandoned this application.

The restaking track has also encountered a similar bottleneck, with a significant outflow of TVL or a switch to new protocols after the airdrop ended. The latest data from Metamask on monthly active users shows a decline from 30 million at the peak of the bull market to 1 million, marking a significant drop.

Industry analysts point out that the real user base brought by airdrops and incentives is relatively limited, and people have begun to feel disgusted with the airdrop customer acquisition strategy. This model has inflated the false prosperity of the Ethereum ecosystem, but lacks true long-term value support, making it difficult to sustain a rebound.

Experts suggest that the Ethereum ecosystem should reduce its excessive reliance on airdrops and focus on nurturing high-quality projects with practical application scenarios to attract real users and achieve sustainable development.

6. Arthur Hayes returns to crypto investment, deeply布局 DATs track

Arthur Hayes, a figure in the cryptocurrency industry, has returned to active investor status five months after being pardoned by President Trump.

The family office Maelstrom Fund, in addition to investing in DeSci projects and political Meme coins, is focusing on the digital asset treasury (DATs) track. However, this strategy has been publicly questioned by ordinary partners within the fund.

Digital asset vault ( DATs ) refers to an innovative product that tokenizes traditional financial assets and circulates them on the blockchain. The DATs track is regarded as the future development direction of on-chain asset allocation, with broad market prospects.

Analysts believe that Arthur Hayes' shift in investment strategy reflects his optimism about the DATs sector. As a seasoned crypto investor, he is expected to leverage his influence and resources to promote the development of the DATs sector.

However, the internal differences within the fund also show that there are still controversies in the DATs track. Some people are skeptical about its long-term value, believing it may repeat the mistakes of token issuance financing. Whether the DATs track can ultimately succeed will need to be tested by time.

7. Federal Reserve Meeting Minutes: Stablecoins may have widespread implications and are worth close attention.

The minutes of the Federal Reserve's July meeting mentioned that many participants discussed recent and future developments related to payment stablecoins and their potential impact on the financial system.

These participants pointed out that with the recent passage of the "GENIUS Act", the use of payment stablecoins may increase. They believe that stablecoins could have a broad impact on the transmission of monetary policy, the banking system, and financial stability, warranting close attention.

The meeting minutes indicate that senior officials of the Federal Reserve attach great importance to the development of stablecoins. As a bridge between cryptocurrencies and the traditional financial system, the development trend of stablecoins will directly influence the Federal Reserve's policy-making.

Industry insiders analyze that the regulation of stablecoins has always been a key focus area for central banks and regulatory agencies worldwide. The Federal Reserve closely monitors the developments of stablecoins, reflecting its high emphasis on maintaining financial stability.

As the application of stablecoins continues to expand in areas such as payments and settlements, their impact on the traditional financial system will also grow. Central banks like the Federal Reserve need to formulate corresponding regulatory policies in a timely manner, seeking a balance between promoting innovation and preventing risks.

4. Economic Dynamics

1. The Federal Reserve's meeting minutes signal a mix of hawkish and dovish tones, with uncertainty surrounding inflation and employment prospects.

Economic Background: The US economy is expected to maintain moderate growth in the first half of 2025, with the unemployment rate remaining low, but inflation levels remain high. The slowdown in GDP growth and the increase in tariffs pose upward pressure on commodity prices, increasing uncertainty in the economic outlook.

Important Event: The Federal Reserve will release the minutes of the July monetary policy meeting on August 21. The minutes show that officials generally expect inflation to rise in the short term, but there is significant uncertainty regarding the timing, magnitude, and persistence of inflation. At the same time, some officials are increasingly concerned about the economic slowdown, expecting economic activity growth to remain sluggish in the second half of the year.

Market Reaction: The meeting minutes released both hawkish and dovish signals, causing a divergence in the market's expectations for a rate hike in September. On one hand, most officials believe that the inflation risk outweighs the employment risk, reflecting a hawkish stance; on the other hand, concerns about economic slowdown may leave room for a rate cut in September. Investors are closely watching Powell's speech on August 22 at Jackson Hole for further guidance on policy direction.

Expert opinion: Paul Ashworth, an analyst at Capital Economics, stated that it is difficult to gain too many clues about future policy from the minutes as they were released before the July employment report. Powell's speech this week is the focus. Blerina Uruci, chief U.S. economist at T. Rowe Price, believes that Powell may emphasize maintaining maximum flexibility for the upcoming meetings, with the policy path depending on inflation and employment data.

2. The Federal Reserve meeting minutes focus on the development of stablecoins, which may drive an increase in demand for U.S. Treasuries.

Economic Background: With the rapid development of the digital economy, cryptocurrencies such as stablecoins are attracting significant attention from regulatory agencies. The U.S. government recently passed the GENIUS Act, laying the legal foundation for the regulation of stablecoins.

Important event: The Federal Reserve's July meeting minutes repeatedly mentioned the term "stablecoin", and many participants discussed the recent developments of payment stablecoins and their potential impact on the financial system. Participants pointed out that with the passage of the "GENIUS Act", the use of payment stablecoins may increase.

Market reaction: The development of stablecoins has garnered significant attention from the market. On one hand, stablecoins can enhance the efficiency of payment systems, potentially increasing the demand for the underlying assets (such as U.S. Treasury bonds), which could push up Treasury yields; on the other hand, the regulation of stablecoins is not yet fully in place, and their development prospects remain uncertain.

Expert Opinion: Federal Reserve Governor Waller calls for embracing payment innovations driven by artificial intelligence and stablecoins. He stated that emerging payment tools like stablecoins could impact the transmission of monetary policy and require close attention. Wall Street Journal reporter Nick Timiraos believes that the Federal Reserve's focus on stablecoins reflects its emphasis on emerging financial technology.

3. U.S. inflation and employment data may trigger policy divergences, with differing expectations for interest rate hikes and cuts.

Economic background: Since 2025, the U.S. economy has been slowing down, inflation has remained high, and the job market has become polarized, increasing uncertainties in the economic outlook. The Federal Reserve faces the challenge of seeking a balance between curbing inflation and supporting employment.

Important events: Inflation and employment data for August will be released in early September. If inflation data is stronger than expected or the job market continues to improve, the Federal Reserve will face pressure to raise interest rates in September; conversely, if job growth slows and the unemployment rate rises, it may lean towards cutting rates.

Market reaction: Investors are closely watching the upcoming economic data. Inflation and employment data will directly influence the direction of the Federal Reserve's policy meeting in September. If the data diverges, it may exacerbate policy disagreements within the Federal Reserve, leading to market volatility.

Expert opinion: Former Federal Reserve Governor Narayana Kocherlakota stated that the Federal Reserve should pay more attention to the labor market rather than inflation data. He believes that inflationary pressures are easing, and a weak labor market could lead to greater economic shocks. Goldman Sachs expects that the Federal Reserve will remain on hold in September, awaiting more data before making a decision.

5. Regulation & Policy

1. The Federal Reserve's meeting minutes focus on stablecoins, attracting market attention.

The minutes of the Federal Reserve's monetary policy meeting in July show that officials are closely monitoring the development of stablecoins and their impact on the financial system. The minutes mention the term "stablecoin" multiple times, indicating that the Federal Reserve has included it in the scope of formal policy discussions.

Background Introduction: Stablecoins are a type of cryptocurrency that is pegged to fiat currencies or other assets, aiming to maintain price stability. With the passage of the "U.S. Stablecoin Guidance and National Innovation Act" (GENIUS Act), regulators expect the use of stablecoins to further increase.

Policy Content: The meeting minutes indicate that participants believe payment stablecoins can help improve the efficiency of payment systems and may increase demand for the underlying assets such as U.S. Treasury bonds (. However, there are also concerns that stablecoins could have broader implications for the banking industry and the implementation of monetary policy, thus requiring close attention.

Market Reaction: Stablecoins have always been a hot topic in the cryptocurrency space. Clear regulations are beneficial for industry development, but it also means that stricter regulations are inevitable. Major stablecoin issuers such as Circle for USDC and Tether for USDT are expected to benefit from favorable policies.

Expert opinion: Goldman Sachs' latest report predicts that trillions of dollars will soon flood into the stablecoin market, indicating a structural shift in the global financial system. However, some analysts believe it is still too early to say that stablecoins will disrupt traditional finance and that further regulatory clarity is needed.

) 2. SEC Chairman states that most cryptocurrencies do not fall under the category of securities.

The new chairman of the U.S. Securities and Exchange Commission, Paul Atkins, stated at the Wyoming Blockchain Summit that most cryptocurrencies themselves do not constitute securities, and the regulatory focus should be on their issuance and sales methods. This position stands in stark contrast to the tough stance of former chairman Gary Gensler and marks a significant shift in U.S. cryptocurrency regulatory policy.

Background: The SEC has long had divergent views on the regulation of cryptocurrencies. Gary Gensler has repeatedly classified most tokens as securities, causing dissatisfaction within the industry. The appointment of Paul Atkins is seen as an opportunity for a shift in regulatory policy.

Policy content: Atkins emphasized that only a very small number of tokens should be classified as securities, and regulatory focus should be on the specific circumstances of token issuance and sales. The SEC has also launched the "Project Crypto" regulatory initiative, aimed at creating a reasonable regulatory framework for cryptocurrencies.

Market reaction: The policy stance has received widespread welcome from the industry. Cryptocurrency companies are expected to break free from the regulatory constraints of securities issuance, bringing new opportunities for their development. However, some analysts are concerned that overly lenient regulations may introduce new risks.

Expert opinion: Former SEC commissioner Robert Jackson stated that Atkins' remarks align with the decentralized nature of cryptocurrencies, but clear regulations still need to be established. The Chief Policy Officer of the cryptocurrency exchange Coinbase called for the SEC to clarify its regulatory direction as soon as possible.

3. UK crypto company executives urge government to establish a stablecoin regulatory framework

A joint letter signed by 30 executives from top crypto companies like Coinbase has been sent to the UK Chancellor of the Exchequer, issuing an urgent warning: unless the UK immediately establishes a clear national strategy and regulatory framework for stablecoins, it will become a "rule taker rather than a rule maker" in the global digital asset competition.

Background: The UK has been striving to attract cryptocurrency companies, but there has been a vacuum in the regulation of stablecoins. This has left the UK in a passive position in the global stablecoin market competition.

Policy Content: Executives are calling on the UK government to immediately establish a regulatory framework for stablecoins, clarifying their legal status and issuance requirements. Only in this way can the UK take a leading position in the global digital asset space.

Market Reaction: UK crypto companies welcomed this, believing that clear regulation will provide certainty for the industry's development. However, some are concerned that excessive regulation may stifle innovation.

Expert Opinion: Ian Taylor, Chairman of the UK Crypto Association, stated that the UK needs to seize the opportunity to become a global hub for stablecoins. However, a former senior advisor at the Financial Conduct Authority warned that stablecoins pose systemic risks and require prudent regulation.