Stablecoins are currently attracting significant attention amid widespread debate about their definition, optimal use cases and potential risks. This Outlook seeks to provide guidance on key developments in the regulation of stablecoins in markets around the world, and to equip firms operating in those jurisdictions with the information they need to develop their response to the growing importance of digital assets.
They are in the spotlight in part because regulators and legislators in multiple jurisdictions have moved to bring them within the regulatory perimeter, legitimising them in the eyes of many as the acceptable face of crypto.
Issuers operating in the jurisdictions where new stablecoin rules are being implemented should familiarise themselves with the requirements and ensure they are able to meet the regulators’ expectations.
Other financial institutions should also pay close attention and consider how the growth and legitimisation of stablecoins may affect their operations and business models.