The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) today published for public consultation preliminary guidance that confirms and clarifies that stablecoin arrangements should observe international standards for payment, clearing and settlement systems.
- CPMI and IOSCO call for comments on new consultation report
confirming that the Principles for Financial Market Infrastructures
(PFMI) apply to systemically important stablecoin arrangements (SAs).
- The report proposes additional guidance on how certain aspects of the PFMI apply to the novel features of SAs.
- CPMI and IOSCO may further examine regulatory, supervisory and
oversight issues associated with SAs and coordinate with other
standard-setting bodies.
The payments landscape has undergone rapid transformation in
recent years and continues to evolve at pace. This is happening at the
same time as financial innovation offers the prospect of new payment
services and greater competition in payments but also potential risks to
the financial system. This consultation document is part of an ongoing
commitment by the international regulatory community to ensure the
principle of 'same risk, same regulation', to identify potential risks
and to help develop appropriate oversight to safeguard financial
stability.
Sir Jon Cunliffe, Chair of the
CPMI and Deputy Governor for Financial Stability at the Bank of England
In 2019, the Group of Seven and the Financial Stability Board (FSB)
conducted work on the impact of global stablecoin arrangements and made recommendations for their regulation, supervision and oversight.
Preliminary analysis conducted by CPMI-IOSCO as part of an October 2020 FSB report
found that "the PFMI apply to stablecoin arrangements that perform
systemically important payment system functions or other financial
market infrastructure (FMI) functions".
Today's consultation paper – Application of the Principles for Financial Market Infrastructures to stablecoin arrangements – upholds
and confirms that determination. Given the novelty and complexity of
stablecoin arrangements, it provides clarification and interpretation
through the provision of guidance on applying existing standards to SAs,
including to some of the novel features of SAs which distinguish them
from other payment systems.
This report marks significant progress in understanding
the implications of stablecoin arrangements for the financial system and
providing clear and practical guidance on the standards they need to
meet to maintain its integrity. We look forward to receiving submissions
to further enhance our insights and recommendations.
Ashley Alder, Chair of the
IOSCO Board and Chief Executive Officer of the Hong Kong Securities and Futures Commission
Each jurisdiction retains the prerogative to determine within its own
context whether to allow stablecoin activity. If it does so, and if an
SA is systemic or is likely to become systemic, then the PFMI
(supplemented by the report's guidance) would also apply.
The CPMI and IOSCO invite comments on this consultative document
generally and the questions set out in the document specifically.
Responses will be published on the websites of the CPMI and IOSCO
unless respondents expressly request otherwise. Commercial or other
sensitive information should not be included in your submission or may
be provided with redactions by the sender for publication.
The CPMI and IOSCO may further examine regulatory, supervisory and
oversight issues associated with SAs and, as appropriate, coordinate
with other standard-setting bodies to address outstanding gaps. This
report is a key contribution to the G20 roadmap on cross-border payments
and supports the FSB's work in this area.
Some issues identified in this report may require further
clarification and follow-up work in 2022 and beyond as the features of
certain projects and SA functions evolve.
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