The European Securities and Markets Authority (ESMA) has just published a report on the perceived risks to financial stability posed by crypto.
From the report conclusion:
Due to their volatile growth cycles, and as long as relevant regulatory provisions do not apply, crypto–assets entail numerous risks which may in future become relevant for financial stability. Until now, turmoil in the market for crypto–assets (much of which can be attributed to the inherent vulnerabilities in the market structure and underlying technology) has not spilled over into traditional financial markets or the real economy.
However, spillovers may occur, depending on how current risks can be contained and how interlinkages between both systems will develop. Though such threats have not yet materialised, understanding their root causes is an important first step in shaping an appropriate regulatory response and mitigating the fallout of market downturns in the future. ESMA is in the process of including crypto–assets in its risk monitoring framework, and will continue to analyse material risk issues as they emerge.
The report is available here https://www.esma.europa.eu/sites/default/files/library/esma50-165-2251_crypto_assets_and_financial_stability.pdf