[New York Fed: The Current Crypto Industry Has Limited Impact On Financial Stability, But Continued Expansion May Pose Risks] The New York Fed (NY Fed) Released A Report This Month On The Impact Of Digital Assets On Financial Stability. The Report Concluded That Due To The Limited Size Of The Industry, The Risks So Far Are Small. But If The Industry Becomes Larger, It May Pose Risks To The Broader Financial System. It Identifies Many Of The Risks Outlined In Previous Reports, But With Some Nuances. The Report Mentioned That Digital Assets Have Experienced Huge Booms And Busts, And Multiple Factors Have Exacerbated Price Volatility. These Include Funding Risk Or Run Risks. A Range Of Digital Asset Participants Have Experienced Runs, Including CEX, Cryptocurrency Lending Institutions, Stablecoins, And Even DeFi Protocols. In Addition, The Industry Uses High Leverage, Which Exacerbates Other Risks, And The Crypto Ecosystem Is Highly Interconnected. The Report Writes That The Lack Of A Strong And Cohesive Regulatory Environment Exacerbates These Vulnerabilities, More Because Many Cryptocurrency Entities Are Located Overseas Or Entities Like DAO Lack Clear Legal Status. Given That The Focus Of The Assessment Is On Financial Stability, The New York Fed Did Not Pay Much Attention To The Threat Of Stablecoins To The Singularity Of Currency, But Paid Special Attention To The Interconnectedness Of Stablecoins In The Crypto Ecosystem And The Mainstream Economy. "They Appear To Not Only Exacerbate The Instability Of The Digital Ecosystem, But Also Bring Systemic Risks," The Report Said. The Report Believes That If The Assets Of Stablecoins Are Illiquid Or Have Long Maturities, Maturity Transformation May Also Occur. It Acknowledges That The Asset Quality Of Large Stablecoins Has Improved Over Time. However, 15% Of Tether's Assets Are Still Relatively Risky. Easy Switching Between Stablecoins May Amplify The Risk Of Stablecoin Runs. Decentralized Stablecoins, Such As DAI (now USDS), Are Considered To Be More Risky Because DAOs Take Longer To React. Regarding Interconnectedness, Stablecoins Are Used In Lending Protocols, So A Run On Stablecoins Will Cause Users To Withdraw Their Loans And Borrowing Rates To Rise Sharply. The Report Also Pointed Out That If Large Stablecoins Suddenly Liquidate A Large Amount Of U.S. Treasury Bonds, Then This May Affect Mainstream Financial Markets