FSB Warns of Global Crypto Regulation Gaps as U.S. Advances with GENIUS Act

The Financial Stability Board (FSB) has raised alarms over fragmented regulatory approaches to cryptocurrencies and stablecoins, warning of potential risks to global financial stability. Despite progress in jurisdictions like the U.S., EU, and Singapore, the FSB's October 2025 review reveals only a handful of countries have fully implemented its 2023 oversight recommendations.

The U.S. has emerged as a leader with the GENIUS Act, signed into law by former President Donald TRUMP in July. The legislation establishes a federal framework for stablecoins, mandating 1:1 reserves with U.S. Treasuries, strict redemption policies, and monthly attestations. This aligns closely with the FSB's global standards on licensing and transparency.

Market adoption continues to outpace regulatory coordination, creating a precarious gap as digital assets MOVE toward mainstream finance. 'The stakes are higher than ever,' observes one policymaker, 'but the solutions remain fragmented.'