Global group warns of crypto intermediary, stablecoin risks

The head of the Financial Stability Board warned of the risks posed by multifunction crypto intermediaries and stablecoins.

Remarks: FSB Chair Klaas Knot said:

  • MCIs have shown that crypto may not be as decentralized as some claim it to be, lack proper governance, and may amplify financial vulnerabilities.

  • Revived interest in the stablecoin market—some of which has come from large tech firms and traditional financial institutions—poses potentially significant systemic implications.

Background: The FSB earlier this week released its key initiatives for the coming year, which includes encouraging the implementation of crypto standards. In a recent speech to the FSB, Acting Comptroller of the Currency Michael Hsu said crypto industry resistance has held up progress on consolidated supervision of virtual assets.

ICBA View: ICBA supports global efforts to advance international cryptoasset regulation, including the FSB’s framework to support consistent regulatory and supervisory standards and baseline policy recommendations from the International Organization of Securities Commissions.

Previous News

  • Independent Banker magazine, podcast honored

    ICBA’s Independent Banker magazine took home top honors in its category for this year’s Association Trends 2024 TRENDY Awards, while the Independent Banker podcast also received recognition in the best podcast category.

    Image

    Feb 29, 2024

  • Navy Federal fallout continues on Capitol Hill

    The fallout of reports on discriminatory lending at Navy Federal Credit Union continued Wednesday with new congressional leaders seeking an inquiry.

    Image

    Feb 29, 2024

  • ICBA urging opposition to Florida credit union bill

    ICBA is encouraging Florida community bankers to respond to the Florida Bankers Association’s request for phone calls opposing state legislation to expand the powers of tax-exempt credit unions.

    Image

    Feb 29, 2024


Related News Taxonomy