In an effort to monitor the global financial system and advise G20 member countries, the Financial Stability Board (FSB) has revealed its intention to prepare standards for regulating cryptocurrencies by July.
Klass Knot, the Chairman of the FSB, has notified G20 finance ministers and central bank governors that the regulatory standards for crypto assets will be “high-level” and will concentrate on enhancing governance, redemption rights, and stabilization mechanisms. The FSB plans to work in close collaboration with the standardization bodies of G20 countries to create these new standards.
Klass Knot has highlighted the FSB’s growing concern regarding stablecoins and the potential risks they may pose to financial stability. He has expressed his agreement with the majority of global regulators that stablecoins currently on the market may not meet the international standards set by developers of payment or securities standards. This has led to the FSB becoming more cautious about stablecoins, and they plan to incorporate measures to mitigate risks in their regulatory standards.
Recently, John Deaton, the founder of Crypto-law, revealed that the US Securities and Exchange Commission (SEC) plans to expand the definition of securities to include crypto assets, especially stablecoins. He believes that this move by the regulator is not only well-thought-out but also dangerous.