Global stablecoin rulemaking slows, prompting BIS to urge cooperation to avoid fragmentation risks

To mitigate risks like sudden withdrawals, policymakers are debating safeguards such as limiting interest payments and offering issuers access to central bank backstops. What to know : Global progress on stablecoin standards has slowed, prompting the BIS and Financial Stability Board to warn that fragmented rules could amplify market risks and encourage regulatory arbitrage. To mitigate risks like sudden withdrawals, policymakers are debating safeguards such as limiting interest payments and offering issuers access to central bank backstops. The U.S. is advancing the Digital Asset Market Clarity Act, with a compromise on stablecoin yield potentially clearing the way for a bill markup.