International Regulators Present Guidance Over the Supervision of Stablecoins

The international regulatory community is issuing guidance on the supervision of stablecoins.

The International Organization of Securities Commissions (IOSCO), an international body that aims to bring together the world’s securities regulators, says it wants to provide more clarity to “systemically important” stablecoin arrangements (SAs), as well as the regulators overseeing them.

 

The IOSCO says stablecoins used for money settlements should have little or no credit or liquidity risk. The international body says stablecoins are subject to “run risk” if a specific stablecoin arrangement loses the confidence of its participants.

 

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