Financial regulators have urged lawmakers to act fast on legislation to address the rising risk of stablecoins. This type of cryptocurrency — ostensibly backed one-to-one by a stable asset like the dollar, making it more practical as a means for trades and transactions — is booming, with some $130 billion now in circulation. Stablecoin issuers, such as Tether and Circle, are not banks and they are not simply tech companies that sell online services: They operate as both and have few rules to guide them.

In an eagerly anticipated report that the Treasury Department released Monday, officials warned that without more oversight, the rise in reliance on stablecoins could result in bank runs, consumer abuse and payment snafus, and potentially threaten the wider financial system.

Stablecoin issuers should be treated like banks, the report recommended, subjecting them to the same reserve requirements as traditional financial institutions to ensure they can meet the demands of customers to cash out quickly.