The Financial Stability Board and the International Organisation of Securities Commissions publish two reports assessing the implementation of recommendations on crypto-asset and stablecoin activities

Assessment of the implementation of recommendations on crypto-assets activities and stablecoin arrangements

The two reports evaluate the implementation of the FSB’s recommendations on crypto-assets and global stablecoin arrangements, and IOSCO’s recommendations on crypto and digital asset markets, respectively. They analyse the regulatory frameworks established in about forty jurisdictions overall, including France. The FSB’s work carries out an assessment in light of risks to financial stability, while IOSCO focuses more on issues of market integrity and investor protection.

The analysis in both reports is based on responses to questionnaires that were sent to participating jurisdictions, as well as interviews, roundtables, and publicly available information. In particular, it examines the authorisation, supervision, and enforcement frameworks developed by jurisdictions, as well as mechanisms for disclosure, communication, and cross-border cooperation.

Implementation progress remains slow and fragmented

The reports note that activities in relation to crypto-assets and stablecoins have evolved rapidly, and that while some progress has been made in implementing regulatory responses, these remain uneven and fragmented at the global level.

While some jurisdictions have developed more mature or advanced regulatory frameworks – such as the MiCA regulation – others remain limited or insufficient in their approach, in particular with regards to addressing the risks posed by stablecoins.

Both reports emphasize the importance of developing adequate and effective regulatory responses to prevent regulatory arbitrage by market participants and to ensure investor protection, market integrity, and financial stability. They thus encourage jurisdictions to accelerate their efforts in adopting the recommendations from both organisations.

Key takeaways and recommendations

The reports provide several takeaways and recommendations for legislators and international standard-setting bodies (such as the Financial Action Task Force, FATF), with a view to encouraging greater adoption of the FSB and IOSCO recommendations.

The FSB report recommends that regulatory frameworks developed by jurisdictions be as comprehensive and robust as possible, to prevent and mitigate risks to financial stability, particularly those arising from “multi-issuer” stablecoin models.

The IOSCO report conveys a similar message, calling for greater consistency and effective enforcement of regulatory frameworks, particularly with regards to transparency requirements and rules concerning conflicts of interest.

Finally, both reports encourage strengthening cross-border cooperation to facilitate the multilateral sharing of information, and in order to better identify and monitor financial stability risks, further harmonise supervisory practices across jurisdictions, and address the risks posed by global platforms.

Active participation from the AMF

The AMF has actively contributed to the work on both reports by participating in the review teams involved, demonstrating its renewed commitment to the harmonised development of secure regulations for crypto-asset activities.

The AMF continues to engage with its European and international counterparts and across various bodies to ensure the adoption of a harmonised and coherent regulatory implementation at both the European and global levels, in order to adequately address issues of investor protection, market integrity, and financial stability.