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Crypto Lode of $100 Billion Stirs U.S. Worry Over Hidden Danger

June 16, 2021, 2:25 PM

Regulators are worried about hidden risks to investors and even the financial system stemming from a fast-growing corner of the crypto market meant to be immune from volatility.

Their focus is on so-called stablecoins, a form of cryptocurrency that has a fixed price, typically one dollar, and is backed by real-money reserves.

At the end of May, the total market capitalization of stablecoins, which include ones offered by crypto firms Tether and Centre, broke $100 billion.

But in recent weeks, lawmakers and officials from the Federal Reserve and the administration have expressed alarm both in public and private that some ...