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Global stablecoin rulemaking slows, prompting BIS to urge cooperation to avoid fragmentation risks
To mitigate risks like sudden withdrawals, policymakers are debating safeguards such as limiting interest payments and offering issuers access to central bank backstops.
Apr 20, 2026, 2:31 p.m.
What to know:
- Global progress on stablecoin standards has slowed, prompting the BIS and Financial Stability Board to warn that fragmented rules could amplify market risks and encourage regulatory arbitrage.
- To mitigate risks like sudden withdrawals, policymakers are debating safeguards such as limiting interest payments and offering issuers access to central bank backstops.
- The U.S. is advancing the Digital Asset Market Clarity Act, with a compromise on stablecoin yield potentially clearing the way for a bill markup.
Global coordination is critical to avoid a patchwork of rules that firms could exploit, de Cos said, according to Reuters. Without international alignment, companies may shift operations to jurisdictions with lighter oversight, a practice known as regulatory arbitrage.
The warning comes as major economies push ahead with their own frameworks, often on different timelines and with different approaches.
The stablecoin sector has expanded over the last few years, and now accounts for $320 billion according to DeFiLlama. Tether’s USDT and Circle Internet’s (CRCL) USDC make up most of that figure. De Cos said their structure can resemble securities more than cash, noting that redemption frictions can push prices away from their intended $1 value.
