FSB: Cross-Border Stablecoin Regulation and Crisis Management Mechanisms Still Immature, Warns of AI Cybersecurity Threats

Odaily News: The Financial Stability Board (FSB) has stated that cross-border stablecoin regulation and crisis management mechanisms remain immature or have yet to be established. FSB Chair Andrew Bailey noted that its 2025 review shows that only 11 out of the 28 jurisdictions surveyed have completed building stablecoin regulatory frameworks.

The FSB warned that stablecoin runs could transmit to traditional financial markets through forced sales of reserve assets and bank deposit withdrawals. For multi-issuer stablecoins, redemption demands could concentrate on a single issuer, while reserve assets are distributed across different jurisdictions — a similar risk that European Central Bank (ECB) President Christine Lagarde had previously flagged.

The FSB has finalized practices for the responsible adoption of AI in the financial sector, covering organizational governance, AI development and deployment, cybersecurity, and third-party service risks. Andrew Bailey stated that AI-driven sophisticated cyberattacks could undermine the resilience of critical financial institutions and market infrastructure. The FSB has submitted related correspondence to the G20 Finance Ministers and Central Bank Governors meeting. (Cointelegraph)