Overview
- An IMF departmental paper calls for coordinated global regulation of stablecoins using a same‑activity, same‑risk, same‑regulation approach.
- The market now tops $300 billion, with roughly 97% of outstanding tokens referencing the U.S. dollar.
- Tether and Circle dominate the sector, with reserves largely in short‑term U.S. Treasuries and bank deposits, concentrating links to traditional markets.
- The paper urges harmonized legal definitions, strict reserve and redemption rules, granular disclosure, AML/CFT enforcement, and cross‑border supervisory colleges.
- The IMF flags risks from regulatory and technical fragmentation, warns on run‑prone algorithmic or partially collateralized designs, and advises against granting digital assets legal‑tender status.