Overview
- Following a plenary in Saudi Arabia, the FSB prioritized modernising regulation, aligning stablecoin regimes, and closer monitoring of expanding private credit ahead of the G20 summit in South Africa.
- FSB Chair Andrew Bailey told leaders the board will focus on vulnerabilities from non-bank finance and called for robust, cross‑border frameworks for stablecoins and improved cross‑border payments.
- The FSB warned that stablecoins pose run risk and create supervisory challenges for multi‑jurisdiction issuers, urging tighter coordination to prevent fragmented rules.
- Basel Committee chair Erik Thedéen said crypto exposure rules need revisiting to reflect the dramatic growth of stablecoins since the standards were set three years ago.
- The Basel crypto framework, calibrated at a 1,250% risk weight for unbacked assets and slated for January 1, 2026, faces resistance, with reporting indicating the U.S. Federal Reserve and Bank of England do not plan to implement it as written.