According to PANews, the Financial Stability Board (FSB), under the leadership of its new chairman, Andrew Bailey, who is also the Governor of the Bank of England, has prioritized evaluating the role of stablecoins in payment settlements. In a public letter to the G20, Bailey emphasized the need for the FSB to continue advancing stablecoin regulatory recommendations and enhancing cross-border regulatory cooperation ahead of the G20 summit. Since taking office in July, Bailey has highlighted the importance of these efforts.
The FSB had previously introduced stablecoin regulatory rules in 2021 to mitigate potential impacts on the global economy. Last year, the organization announced plans to conduct an in-depth study on the risks associated with stablecoin applications in emerging markets. In a recent interview with The Times, Bailey warned that investment banks developing their own stablecoins could undermine credit creation and monetary policy control.
As the stablecoin market reaches new heights, global regulatory measures are intensifying. The U.S. Senate has already passed the GENIUS Stablecoin Act, reflecting the growing focus on stablecoin regulation worldwide.