IMF issues stablecoins regulatory guidelines to address 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 regulatory frameworks.

In the “Understanding Stablecoins” report published on Thursday, the IMF analyzes different approaches taken by regions such as the US, UK, Japan, and the EU in establishing regulatory frameworks for stablecoins.

Although the report notes that emerging regulatory measures may help mitigate macro-financial stability risks, the regulatory landscape remains “fragmented,” with differences in both policymakers’ approaches and the ways stablecoins are issued.

“The surge of new stablecoins on different blockchains and exchanges has raised concerns about potential inefficiencies due to a lack of interoperability,” the IMF stated. “In addition, differing regulatory treatments and trading difficulties could introduce divergences and barriers between countries.”

The IMF added: “While stablecoin regulation can help authorities address certain risks, sound macroeconomic policies and strong institutions should be the first line of defense. International coordination remains crucial to solving these issues.”

The report points out that the two largest stablecoins by market capitalization, USDT and USDC, are “primarily backed” by US Treasury bills, US Treasury-collateralized repurchase agreements, and bank deposits. Forty percent of USDC reserves and about 75% of USDT reserves consist of Treasury bills, with Tether’s stablecoin also holding 5% of its reserves in Bitcoin.

The vast majority of the global stablecoin market consists of currencies pegged to the US dollar. However, a few issuers label their products in other currencies, such as the euro. As of December, the total market size exceeded $300 billion.

Genius Act is being implemented

After US President Donald Trump signed the “Genius Act” in July, regulators have been working to develop rules to establish a comprehensive framework for payment stablecoins in the country. Blockchain security auditing firm CertiK stated on Thursday that the measure has, in effect, shifted liquidity toward independent funding pools of US and EU stablecoins.