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FSB Warns Global Gaps in Crypto and Stablecoin Rules Threaten Financial Stability

The G20 watchdog urges full uptake of its 2023 standards to curb regulatory arbitrage through stronger cross-border oversight.

Overview

  • There are significant gaps and inconsistent implementation of crypto rules across jurisdictions, the FSB’s latest review finds.
  • Stablecoin oversight is lagging in most countries, with only a handful having complete frameworks as circulation totals roughly $290 billion.
  • The FSB assesses risks as limited at present but rising as the broader crypto market reaches about $4 trillion and linkages to banks grow.
  • Fragmented approaches are enabling regulatory arbitrage and forum shopping by crypto firms and stablecoin issuers, complicating supervision.
  • Governments are urged to fully implement the global framework and assess cross-border activity, with the report noting U.S. progress under the GENIUS Act.