Stablecoins should heed same rules as traditional payment players, BIS says

Systemically important stablecoins should follow the same rules as other traditional payment systems to safeguard financial stability, said two international financial standard-setting bodies. The Committee on Payments and Market Infrastructures, which is part of the Bank for International Settlements, and the International Organization of Securities Commissions published for public comment preliminary guidance that "clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems." The document is part of an effort by the international regulatory community "to ensure the principle of ‘same risk, same regulation’, to identify potential risks and to help develop appropriate oversight to safeguard financial stability," said Sir Jon Cunliffe, chair of the CPMI and deputy governor for Financial Stability at the Bank of England. Ashley Alder, chair of the IOSCO board and CEO of the Hong Kong Securities and Futures Commission, said the report " marks significant progress in understanding the implications of stablecoin arrangements