FSB Warns Stablecoin Crisis Plans Remain Untested

The Financial Stability Board warned on October 12 that global stablecoin arrangements have not been tested under severe market stress or issuer insolvency, and called for stronger cross-border monitoring, information-sharing and crisis planning. The FSB said gaps in oversight could complicate responses if redemptions surge across jurisdictions. In a report accompanying a letter from Chair Andrew Bailey, the FSB said national regulatory frameworks are advancing unevenly. Its 2025 review found that 11 of 28 surveyed jurisdictions had finalized stablecoin regulatory frameworks. The board urged authorities to improve monitoring of cross-border vulnerabilities and coordinate contingency plans for distress or failure. The report estimated stablecoin market value at about $300 billion at mid-2026, with approximately 99% pegged to the U.S. dollar. It said the tokens are used mainly as liquidity within crypto markets, while also serving as a store of value in some emerging and developing economies. The FSB noted they could eventually support faster domestic and cross-border payments.