Global financial watchdog calls for cross-border information sharing, planning for stablecoin crisis

The Financial Stability Board (FSB) warned that stablecoins could expose gaps in cross-border financial rules during a market crisis and remain untested in such a scenario, and called for more cross-border information sharing, monitoring and planning for stablecoin distress or failure. The G20’s financial watchdog said in a report that global stablecoins, crypto tokens whose value is pegged to a fiat currency, have not been tested under severe stress or insolvency, while the national regulatory frameworks are developing at different speeds, raising questions over how holders would recover their funds if an issuer went under.