FSB Says Cross-Border Stablecoin Rules Remain Underdeveloped

The Financial Stability Board warned Monday that cross-border stablecoin oversight and crisis-management frameworks remain underdeveloped, raising concerns about how a stablecoin run could spread through traditional markets.

Only 11 of the 28 jurisdictions covered by the FSB’s 2025 review had completed stablecoin regulatory frameworks. The board said gaps remain in both oversight and arrangements for managing crises involving stablecoins that operate across borders.

A severe redemption wave could force sales of reserve assets and prompt withdrawals from banks, transmitting stress to broader financial markets. For stablecoins with multiple issuers, redemption demand could also concentrate on one issuer while reserves remain spread across several jurisdictions.

FSB Chair Andrew Bailey warned that increasingly complex cyberattacks powered by artificial intelligence could weaken the resilience of major financial institutions and market infrastructure.

The FSB has finalized practices for responsible AI use in finance, covering organizational governance, AI development and deployment, cybersecurity and risks involving third-party service providers. The board submitted the related letter to G20 finance ministers and central bank governors.