FSB investigating the regulatory potential of stablecoins
The rise of stablecoins could create regulatory challenges for the financial services industry, according to Randal K. Quarles, chair of the Financial Stability Board (FSB).
Addressing an audience at the European Banking Federation’s summit in Belgium, Quarles says: “although there is a small risk to financial stability today, there is no doubt the potential scale of stablecoins and other crypto-assets yet to emerge may pose regulatory challenges.”
He adds that the G7 are finishing a preliminary assessment of stablecoins, while the G20 has asked the FSB to lead the work going forward.
“This is an issue that can potentially affect every country in the world,” says Quarles.
“We have already begun work to identify which regulations exist that apply to stablecoins in our jurisdictions. Once that assessment is complete, we will report to the G20 on any appropriate actions that need to be taken.”
The FSB chair is also a governor and vice-chairman of the supervisory department at the US Federal Reserve. He made similar remarks about the regulation of cryptocurrency earlier this year, remarking that the goal of a “robust framework” was increasingly important.
Read more: The emerging landscape of fintech regulation