April 14, 2020 The Financial Stability Board offers advice to regulators for how to treat stablecoins.

The Financial Stability Board (FSB), a constituent of the G20 group published a report on Tuesday detailing how national regulators should treat stablecoins. Although the body stated that there is already existing legislation governing stablecoins, it warned that in some cases it was insufficient and that, consequently, regulators may not be prepared for the ramifications of stablecoin usage. Specifically, the board warned that the technology that supports such assets and payment networks has not been adequately tested at scale, potentially presenting yet-unfound weaknesses in the case of increased adoption, which in turn could negatively affect economic activity. Beyond this, the FSB recommended that regulators be more proactive in assessing future risks and regulatory blindspots while increasing collaboration between countries.