Stablecoin
Crypto-native stablecoins are in the hot seat as the race for the future of money rages on
Shadow of Libra prompts UK to take decisive action
Amid a divided Congress, market participants expect stablecoins to be the first type of digital asset to be regulated
High financial and prudential standards will limit issuances to bigger crypto entities with strong financials, as well as significantly raise compliance costs
An overload of draft bills and statements has sown more confusion in an asset class that continues to suffer from a lack of regulatory leadership
The proposals are expected to require stablecoin issuers to hold stable reserves such as cash or US treasury bonds to fully reinforce issued cryptoassets
Under growing pressure for international standards to be established on digital asset regulation, the two bodies have published statements to address financial stability risks
The regulation will bring a unified approach to cryptoassets across the EU on issues such as AML, consumer protection and financial stability
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