IOSCO concluded that "a case-by-case approach is
needed to establish which IOSCO Principles and Standards, and
national regulatory regimes" apply to proposed stablecoins.
IOSCO stated that "a detailed understanding of how the
particular proposed stablecoin is expected to operate" is
necessary for such a determination. This includes "the rights
and obligations it confers on participants and the continuing
obligations of the sponsor."
At a Board meeting held on October 30, 2019, IOSCO considered
the risks and benefits of stablecoins to the global economy,
including impacts on "consumer protection, market integrity,
transparency, conflicts of interest and financial crime, as well as
potential systemic risks." The IOSCO FinTech Network provided
an assessment of global stablecoin initiatives and recommended that
IOSCO decide which IOSCO Principles and Standards and national
regulatory regimes are applicable to stablecoins on a case-by-case
basis.
