FSB warns gaps in cross-border stablecoin crisis response remain

The Financial Stability Board warned a large-scale wave of stablecoin redemptions could spill into traditional financial markets, Cointelegraph reported. The FSB said if stablecoin holders seek redemptions all at once, issuers may be forced to rapidly sell reserve assets or withdraw bank deposits, potentially spreading shocks to conventional markets. It added that stablecoins involving multiple issuers carry added risk because reserve assets are spread across several countries while redemption requests could concentrate on a specific issuer. In a letter to the Group of 20, FSB Chair Andrew Bailey said cross-border supervisory and crisis-response frameworks for stablecoins remain inadequate or are not yet in place. Bailey also said AI-driven cyberattacks could weaken the resilience of major financial institutions and market infrastructure. Separately, an FSB survey in 2025 found only 11 of 28 countries and jurisdictions had established stablecoin regulations.