Watchdog Tells G20 Stablecoin Rules Are Still Half-Baked and AI Poses Fresh Dangers

The Financial Stability Board has fired off a letter to G20 finance chiefs and central bankers, flagging that cross-border oversight of stablecoins remains patchy. Chair Andrew Bailey noted that only 11 of the 28 jurisdictions reviewed in 2025 have finished writing clear rules.

The biggest worry is a sudden wave of redemptions. If holders rush to cash out, issuers would have to dump reserves and pull deposits from banks, potentially dragging traditional markets into the turmoil. Multi-issuer coins are especially exposed because redemption pressure could hit one issuer while reserves sit in several different countries.

Bailey also urged G20 members to back the FSB’s June guidance on responsible AI use in finance. He warned that AI-powered cyber attacks could weaken critical institutions and market plumbing.

The message lands just before the G20 gathering on Thursday. ECB chief Christine Lagarde had already raised similar redemption concerns earlier this year.

Based on information from cryptonews.net