STABLECOINS | Financial Stablecoin Board (FSB) Warns of Stablecoin Risks Related to Regulatory Monitoring Gaps

The Financial Stability Board (FSB) has warned that gaps in cross-border stablecoin regulation and growing artificial intelligence (AI) threats could undermine global financial stability, urging stronger international cooperation ahead of a Group of 20 (G20) meeting on October 15 2026. In a letter published on October 12 2026, FSB Chair, Andrew Bailey, highlighted risks spanning sovereign bond market volatility, vulnerabilities in private credit markets and emerging AI-related threats. The letter was accompanied by a report examining vulnerabilities in global stablecoin arrangements and the challenges of monitoring their potential impact on financial stability.