The Financial Stability Report (FPC) noted that the crypto crash was similar to past events in the traditional system. These include fire sales and leverage amplifying price falls. Additionally, it highlighted the need for regulation of stablecoins, with work already in progress both domestically and internationally.
Smaller stablecoins will be governed by amended e-money legislation, similarly to Europe’s MiCA legislation. There is an interest in designing a guarantee scheme for stablecoins similar to that available to bank account holders.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now