On April 14, 2020, the Financial Stability Board (FSB) submits for consultation its analysis paper on “stablecoins” and “global stablecoins” (GSCs):  Addressing the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements. The FSB’s objective is to propose to the G20 an analysis of the regulatory barriers raised by GSCs and recommendations for their regulation and oversight.

In its response to the FSB, the Adan insists in particular on the following points:

  • The distinction between stablecoins and GSCs is artificial and should be abandoned.
  • Stablecoins must be subject to ad hoc regulation, in the same way as all digital assets not qualified by the current legislation.
  • To guarantee the protection of users and the integrity of markets, while preserving innovation and the competitiveness of players within the financial system, the stablecoin regulatory regime must meet the challenges of flexibility, proportionality and pragmatism.
  • While the FSB is interested in the risks associated with stablecoins, the Council should also explore the opportunities, which Adan elaborates on in its response. A risk/benefit approach is indeed essential to build appropriate and therefore effective requirements.