FSB Chair Urges Swift Action on Global Stablecoin Regulation

Financial Stability Board (FSB) Chair Andrew Bailey has emphasized the urgent need for global regulatory action concerning stablecoins, highlighting the risks associated with their rapid growth and potential impact on financial stability. With many jurisdictions still grappling with finalized regulations, Bailey argues that this creates opportunities for regulatory arbitrage and exacerbates existing financial instability. He warns of the cascading effects of shocks arising from regulatory disparities when stablecoin frameworks are inconsistent across borders.