Financial Stability Board calls for high regulatory standards for stablecoins
The FSB is not the only international body that has cautioned against the risks associated with stablecoins.
The Bank for International Settlements said in a report last month that stablecoins are always in search of a nominal anchor, to “piggyback on the credibility provided by the unit of account issued by the central bank.”
“The fact that stablecoins must import the credibility of central bank money is highly revealing of crypto’s structural shortcomings,” BIS general manager Agustin Carstens told reporters at a June briefing prior to the report release. “Only the central bank can provide the nominal anchor that crypto craves.”
Caroline Pham, commissioner of the U.S. Commodity Futures Trading Commission, said at a Forkast+ event in June that the priority is “figuring out what can we do right now to help make sure that the retail public is protected and that this contagion does not spread any further.”
U.S. Treasury Secretary Janet Yellen has repeatedly said that it’s “highly appropriate” to have a framework ready by the end of this year.
In November 2021, the U.S. President’s Working Group on Financial Markets published a report on stablecoins, urging the Congress to act quickly to enact relevant legislation.
“We foresee legislative efforts receiving not only bipartisan support but also industry support,” Shing of XREX said.
European officials are also actively watching the space.
In June, European Union officials agreed to the Markets in Crypto-Assets (MiCA) law, placing cryptocurrencies, issuers and service providers under what appears to be the bloc’s first regulatory framework for the industry. The rules are expected to kick in as early as 2024.
https://forkast.news/financial-stability-board-regulatory-standards-stablecoins/