Two years ago the Financial Stability Board (FSB) made high level recommendations for the regulation and oversight of global stablecoin (GSC) arrangements which were endorsed by the G20. Today it updated those GSC recommendations and published a similar guidance list for crypto-assets, requesting feedback.
The FSB’s analysis found most stablecoins don’t comply with the recommendations and says they need to improve their governance, risk management, redemption rights, stabilization mechanisms and disclosures.
Some updated recommendations are informed by the crypto crash triggered by the collapse of the Terra stablecoin and the temporary de-pegging of the largest stablecoin, Tether.
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