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.