Financial Stability Board Warns of Immature Regulation of Cross-Border Stablecoins and AI Cybersecurity Threats

By: cointelegraph.com|10/12/2026 06:42:30

The Financial Stability Board (FSB) has stated that the regulation and crisis management mechanisms for cross-border stablecoins are still immature. A review in 2025 showed that only 11 out of 28 jurisdictions surveyed have completed the construction of a stablecoin regulatory framework. The FSB warned that stablecoin runs could transmit to traditional financial markets through forced sales of reserve assets and withdrawals of bank deposits. For multi-issuer stablecoins, redemption demands may concentrate on a single issuer, while reserve assets are distributed across different jurisdictions. European Central Bank (ECB) President Christine Lagarde has also highlighted similar risks. The FSB has finalized responsible practices for the adoption of AI in the financial sector, covering organizational governance, AI development and deployment, cybersecurity, and third-party service risks. FSB Chair Andrew Bailey stated that AI-driven complex cyberattacks could undermine the resilience of critical financial institutions and market infrastructure. The FSB has submitted relevant letters to the G20 finance ministers and central bank governors' meeting.

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