BIS issues regulatory recommendations for global stablecoin arrangements

Quick Take

  • The Bank for International Settlements has issued recommendations for the regulation, supervision and oversight of global stablecoin arrangements.

The Bank for International Settlements has proposed recommendations for regulating global stablecoins.

In a summary of recommendations issued on Thursday, the BIS described GSCs as widely adopted stablecoins with a potential reach and use across multiple jurisdictions. "A GSC could become systemically important in and across one or many jurisdictions," the BIS said. 

Recommendations for GSC arrangements

The BIS summary outlined key recommendations that aim to address financial stability risks posed by GSCs on both the domestic and international levels.

The recommendations also aim to support GSC innovation and provide flexibility for jurisdictions to implement domestic approaches. 

Some of the key recommendations call on global jurisdictions to be ready to regulate and supervise global stablecoin arrangements, with a focus on cross-border cooperation, coordination and information sharing.

Risk management recommendations

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