The International Financial Stability Board (FSB), a body setup to legislate the crypto ecosystem to avert financial downfall, intends to submit a regulatory proposal for crypto assets, as reported by a recent article.
According to the report, diverse cryptocurrency assets inclusive of stablecoins are rapidly evolving, hence would be included in the recommended proposal.
The statement further highlighted that “the FSB is working to ensure that crypto-assets are subject to robust regulation and supervision” with emphasis on how the current downtrend of the crypto space is exposing the innate volatility and susceptibility of the market.
This “turmoil” also accentuates the inter-relationship between the crypto market and the conventional monetary system, the board added.
Terra stablecoin tumble, as a result of the crypto market plunge, is hastening these legislative measures.
Policymakers had previously concurred to a law that would oversee platforms that issue stablecoins backed by sovereign monies.
Following the FSB head, Klaas Knot’s statement in May concerning being fit to uphold a “coherent global regulatory framework for crypto assets,” the body plans to present an article to the G-20 in October.
The article would underline an inspection for “high-level recommendations for the regulation, supervision, and oversight of stablecoin” and the improvement of “international consistency of regulatory and supervisory approaches to other crypto assets.”