Multiple Financial Regulatory Bodies Publish Reports On Digital Assets

Multiple financial regulatory bodies addressed digital assets this week. First, the Financial Stability Board (FSB) issued a statement on international regulation and supervision of crypto-asset activities. Among other things, the statement noted "[t]he recent turmoil in crypto-asset markets highlights their intrinsic volatility, structural vulnerabilities and the issue of their increasing interconnectedness with the traditional financial system." The statement called for regulation and oversight commensurate with the risks of crypto assets, including stablecoins. The statement also notes that the FSB "will report to the G20 Finance Ministers and Central Bank Governors in October on regulatory and supervisory approaches to stablecoins and other crypto-assets."