The gaps in global stablecoin regulation have been called out
Ahead of the G20 meeting, FSB Chair Bailey sent a letter: of the 28 jurisdictions surveyed, only 11 have implemented a stablecoin regulatory framework. Cross-border crisis management mechanisms are either underdeveloped or nonexistent
Guys, this is no ordinary report
The Financial Stability Board is the kind of organization that advises the G20. Its meeting in Bangkok is coming up on October 15, and this letter is its homework, turned in early
Put simply, regulation can’t keep up with stablecoins
Stablecoins are cross-border by nature: issued in one place and circulated worldwide, with reserves spread across several jurisdictions. If something goes wrong, who’s in charge—and whose rules apply? There are no answers yet
The most alarming part is the chain reaction it describes
If a stablecoin faces a run, its issuer may be forced to sell reserve assets, while users rush to withdraw their money from banks. The pressure then spills directly into traditional financial markets
Stablecoins with multiple issuers have reserves spread across different jurisdictions, making liquidity management and recovery efforts even more complicated
People used to think stablecoin regulation was each country’s own business
Now the FSB has classified it as a global financial stability issue, meaning member countries must sit down together and set rules
Of course, don’t rush to read this as bad news. Stablecoins have a total market value of around $300 billion, 99% of them are pegged to the U.S. dollar, and the market has barely grown in a year. That suggests this isn’t a bubble inflating—it’s infrastructure being built
My view is clear: regulation is a necessary step for stablecoins to go mainstream. There may be friction in the short term, but in the long run it will put giants like $USDT on firmer footing
Once regulation has paved the way, the one that runs most steadily will be the ultimate winner 😂
#FSB警告跨境稳定币监管仍不完善 #稳定币 #USDT
Ahead of the G20 meeting, FSB Chair Bailey sent a letter: of the 28 jurisdictions surveyed, only 11 have implemented a stablecoin regulatory framework. Cross-border crisis management mechanisms are either underdeveloped or nonexistent
Guys, this is no ordinary report
The Financial Stability Board is the kind of organization that advises the G20. Its meeting in Bangkok is coming up on October 15, and this letter is its homework, turned in early
Put simply, regulation can’t keep up with stablecoins
Stablecoins are cross-border by nature: issued in one place and circulated worldwide, with reserves spread across several jurisdictions. If something goes wrong, who’s in charge—and whose rules apply? There are no answers yet
The most alarming part is the chain reaction it describes
If a stablecoin faces a run, its issuer may be forced to sell reserve assets, while users rush to withdraw their money from banks. The pressure then spills directly into traditional financial markets
Stablecoins with multiple issuers have reserves spread across different jurisdictions, making liquidity management and recovery efforts even more complicated
People used to think stablecoin regulation was each country’s own business
Now the FSB has classified it as a global financial stability issue, meaning member countries must sit down together and set rules
Of course, don’t rush to read this as bad news. Stablecoins have a total market value of around $300 billion, 99% of them are pegged to the U.S. dollar, and the market has barely grown in a year. That suggests this isn’t a bubble inflating—it’s infrastructure being built
My view is clear: regulation is a necessary step for stablecoins to go mainstream. There may be friction in the short term, but in the long run it will put giants like $USDT on firmer footing
Once regulation has paved the way, the one that runs most steadily will be the ultimate winner 😂
#FSB警告跨境稳定币监管仍不完善 #稳定币 #USDT