FMI presents guidelines for dealing with stablecoin risks

Source: Exame Original Title: IMF presents guidelines for dealing with stablecoin risks Original Link: The International Monetary Fund (IMF) has released a comprehensive report on the potential impact of the growing stablecoin market and the adequacy of global regulations to address it.

In the report “Understanding Stablecoins,” published on Thursday, the IMF analyzed the different approaches taken by regions such as the United States, United Kingdom, Japan, and the European Union in establishing a regulatory framework for stablecoins.

While the report noted that emerging regulations could mitigate risks to macro-financial stability, the landscape was “fragmented,” both in the approaches of policymakers and in how stablecoins are issued.

“The proliferation of new stablecoins on different blockchains and exchanges raises concerns about inefficiencies due to the possible lack of interoperability,” the IMF stated. “Furthermore, this could introduce divergences and obstacles between countries, due to different regulatory treatments and difficulties in transactions.”

The IMF added:

“While the regulation of stablecoins helps authorities address [determinados] risks, sound macroeconomic policies and robust institutions […] should be the first line of defense […] International coordination remains key to addressing these issues.”

The report stated that two of the largest stablecoins by market capitalization, USDT and USDC, were “mostly backed” by short-term US Treasury securities, reverse repurchase agreements collateralized with US Treasuries, and bank deposits. Forty percent of USDC reserves and about 75% of USDT reserves consisted of short-term Treasuries, with Tether’s stablecoin also holding 5% of its reserves in bitcoin.

The vast majority of the global stablecoin market is made up of coins pegged to the US dollar. However, a small number of issuers have denominated their offerings in other currencies, such as the euro. In December, the total market exceeded $300 billion.

Genius Act is being implemented

After United States President Donald Trump signed the Genius Act into law in July, regulators have been working to establish rules that create a comprehensive framework for payment stablecoins in the country. Blockchain security auditor CertiK reported on Thursday that the measure, in practice, has shifted liquidity into separate pools of US and EU stablecoins.