Featured Product

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    October 07, 2021

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements. The report discusses key market and regulatory developments since the publication of the recommendations in October 2020 and takes stock of the implementation of the recommendations across jurisdictions. The report also describes the status of existing standard-setting body frameworks, standards, guidelines, and principles in light of the recommendations and concludes with an identification of the consideration areas for further international work.

    The report takes stock of the implementation of the high-level recommendations in 48 FSB jurisdictions, covering 21 advanced economies and 27 emerging market and developing economies. The report notes that the market capitalization of existing stablecoins has continued to grow during 2020-21. However, the implementation of the FSB high-level recommendations across jurisdictions is still at an early stage. Jurisdictions have taken, or are considering, different approaches toward implementing the recommendations. The report notes that standard-setting bodies—including the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI), and the International Organization of Securities Commissions (IOSCO)—are assessing whether and how existing international standards and principles may apply to stablecoin arrangements and, where appropriate, are adjusting them in the light of the recommendations.

    The report emphasizes that a number of issues may not be fully covered by ongoing work and that any gaps in existing standards and principles should be addressed holistically, with coordination across sectors. Authorities have identified several issues with respect to the implementation of the recommendations and further work at the international level could be useful in the identified areas; these include conditions for qualifying a stablecoin as a “global stablecoin”; prudential, investor protection, and other requirements for issuers, custodians, and providers of other global stablecoin functions; redemption rights; cross-border and cross-sectoral cooperation and coordination; and mutual recognition and deference. Further work on these issues at the international level may help to support effective implementation of the recommendations at the jurisdictional level, to mitigate the risk of regulatory fragmentation and arbitrage and to address risks to financial stability arising from global stablecoins. The work on fostering the soundness of global stablecoins is an important part of the FSB roadmap for enhancing cross-border payments endorsed by the G20 in October 2020. FSB plans to review its recommendations, in consultation with the other relevant standard-setting bodies and international organizations, by July 2023; the review, will identify ways to address gaps could be addressed in existing frameworks and will lead to an update of the FSB recommendations, if needed.

     

    Related Links

    Keywords: International, Banking, Securities, Crypto Assets, G20, Stablecoins, Digital Currency, Progress Report, FSB

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267