FSB concerned about lack of stablecoin regulation

The Financial Stability Board reiterated its calls for countries to regulate stablecoins due to concerns about users losing confidence in stablecoins, which could lead to runs on issuers.

Details: In an update to its G20 Crypto-Asset Policy Roadmap, the FSB said:

• The continued growth of crypto markets and their increasing interlinkages with the traditional financial system could present systemic risks.

• Cross-border crypto-asset activities that originate from offshore jurisdictions present elevated regulatory and supervisory challenges.

• The prevalence of non-compliance with applicable laws and regulations significantly undermines efforts to implement international standards on crypto assets.

Background: The FSB recently told the G20 that more than half of jurisdictions expect to reach alignment with the FSB global regulatory framework for crypto-asset activities by 2025.

ICBA View: As lawmakers continue to debate a regulatory framework for cryptocurrency, the October Independent Banker magazine highlights how ICBA remains engaged to ensure that policymakers address the concerns of community banks.