Overview

• The Financial Stability Board said implementation of its 2023 crypto framework remains fragmented and inconsistent, enabling regulatory arbitrage across jurisdictions.
• Stablecoin regulation is largely incomplete worldwide, even as the market has grown to just under $290 billion and is increasingly used in payments and settlements.
• The watchdog assessed that systemic risks are limited for now but rising as the crypto market has roughly doubled to about $4 trillion and saw about $20 billion of liquidations during last week’s crash.
• Governments were urged to fully adopt the global framework and to evaluate the scale and nature of cross-border crypto-asset flows into and out of their markets.
• The review covered 29 jurisdictions, with the United States participating only on stablecoins and El Salvador not participating, and it found weak supervision of higher-risk activities such as borrowing, lending and margin trading.