FSB Warns Stablecoin Markets Lack Cross-Border Insolvency Rules
- —Stablecoin capitalization grew from about $206 billion in early 2025 to $306 billion
- —Multi-issuer structures spread reserves across jurisdictions while sharing liability
- —Stablecoins trade 24/7, but markets for their reserve assets keep set hours
- —The FSB's recommendations are not legally binding and must be adopted nationally
Why it matters: If the FSB pushes toward harmonized rules, issuers like Tether and Circle could face new reserve and disclosure requirements.
Source: HackerNoon (crypto tag)