“Global Stablecoin Rulemaking Stalls, BIS Urges Cooperation to Avert Fragmentation | Nova G” — what this page in the network covers. Global efforts to regulate stablecoins are experiencing a significant slowdown, prompting the Bank for International Settlements (BIS) to issue a strong ca... Global efforts to regulate stablecoins are experiencing a significant slowdown, prompting the Bank for International Settlements (BIS) to issue a strong call for international cooperation. The delay stems from the complex task of balancing innovation with financial stability, leading to divergent national approaches.
Regulators are debating safeguards such as limiting interest payments and providing central bank backstops to mitigate risks like sudden withdrawals. However, the lack of coordinated rulemaking risks creating a fragmented market, regulatory arbitrage, and potential systemic instability. The BIS warns against a "race to the bottom" and emphasizes the need for common principles on stablecoin design, governance, and reserve management. This listing links straight to the original page, where the content is available in full.