Current outcome
The Financial Stability Board (FSB) warned that stablecoin issuers could face redemption crises even when total reserves are sufficient if reserves are spread across jurisdictions and become difficult to mobilize. The FSB specifically flagged risks in stablecoins issued by multiple affiliated companies that share liability for the same token while holding separate reserves, and noted that pseudonymous transactions and differences in national insolvency laws complicate determining responsibility. FSB Chair Andrew Bailey said international regulatory coordination remains underdeveloped, and the risks will be discussed at the Oct. 15 G20 meeting of finance ministers and central bank governors.
Progress timeline
2 material updates- #01
Global financial watchdog calls for cross-border information sharing, planning for stablecoin crisis
A global financial watchdog urged regulators to establish cross-border information-sharing and crisis-response plans for stablecoins, warning that jointly issued multi-jurisdiction coins can leave reserves stranded in one country while redemption demands surge in another.
Source evidence: CoinDesk
- #02
Global watchdog warns the $300 billion stablecoin market could face bank runs even with full reserves
FSB report details $300 billion stablecoin market with 99% USD peg, specific risks of affiliated issuers, pseudonymity and insolvency law differences, and plans for Oct 15 G20 discussion.
State after update: The Financial Stability Board (FSB) warned that stablecoin issuers could face redemption crises even when total reserves are sufficient if reserves are spread across jurisdictions and become difficult to mobilize. The FSB specifically flagged risks in stablecoins issued by multiple affiliated companies that share liability for the same token while holding separate reserves, and noted that pseudonymous transactions and differences in national insolvency laws complicate determining responsibility. FSB Chair Andrew Bailey said international regulatory coordination remains underdeveloped, and the risks will be discussed at the Oct. 15 G20 meeting of finance ministers and central bank governors.
Source evidence: CryptoSlate