FSB warns cross-border stablecoin rules remain untested in a severe market crisis
Summary
The Financial Stability Board warned that stablecoins have not been tested in a severe market crisis and that uneven national rules could complicate redemptions and insolvency proceedings. Risks include multi-issuer structures with reserves spread across jurisdictions, 24/7 trading against backing assets with limited operating hours, and weak data on holders’ locations. A run could force reserve sales and withdrawals from banks, potentially spreading stress to traditional markets. The FSB urged stronger cross-border information sharing, monitoring and failure planning. Its recommendations are nonbinding. Stablecoin market capitalization has risen from about $206 billion to $306 billion in 2025, mostly in dollar-pegged tokens.
