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The European Banking Federation (EBF) has responded to the joint consultation from the Committee on Payments and Markets Infrastructure (CPMI) and the International Organisation of Securities Commissions (IOSCO) on the Application of the Principles for Financial Markets Infrastructures to stablecoin arrangements.
We agree with the general aim of this report, notably that of applying the current principles for financial markets infrastructures (PFMI) to systemically important stablecoin arrangements (SAs) without creating additional standards for SAs. The financial market continues to evolve as new products and technology continue to impact the way consumers transact and save. Undertaking a holistic approach to regulation that is principles based and technology neutral will help promote financial stability and, at the same time, foster innovation in financial services, better serve customers and ensure the flexibility to adapt to an evolving market. However, the potential vulnerabilities and risk arising from SAs should not be neglected and be properly addressed.
Establishing a “level playing field” that applies to all stages of the stablecoin ecosystem will promote innovation and safely open up new services for businesses and consumers.