FSB Chair Prioritizes Stablecoin Assessment Amid Growing Regulatory Scrutiny

The Financial Stability Board (FSB) has placed stablecoin evaluation at the forefront of its agenda under new Chair Andrew Bailey. In his inaugural letter to G20 leaders, Bailey highlighted the need to assess stablecoins' expanding role in payment and settlement systems as part of broader efforts to mitigate financial stability risks.

Regulators are intensifying their focus on stablecoins as these digital assets gain traction in both traditional finance and DeFi ecosystems. The FSB's assessment will likely examine potential impacts on monetary policy transmission, payment system stability, and cross-border financial flows—a clear signal that stablecoins are now viewed as systemically important.

This MOVE forms part of a coordinated global push to establish regulatory guardrails for digital assets. With stablecoins becoming increasingly embedded in financial infrastructure, Bailey's prioritization reflects growing consensus among policymakers that the sector requires urgent oversight.