The Financial Stability Board has urged G20 finance ministers and central bank governors to strengthen safeguards around stablecoins and artificial intelligence, warning that both developments could create risks for financial stability and market infrastructure.
In a letter submitted ahead of the G20’s Thursday meeting, FSB Chair Andrew Bailey said international arrangements for supervising stablecoins across borders and managing potential crises were still incomplete. According to Cointelegraph, the watchdog also called on G20 members to support its newly finalized practices for the responsible use of AI in finance.
Stablecoin oversight remains uneven
Stablecoins are digital assets designed to maintain a stable value, often by being backed by reserves. Their cross-border use can make it difficult for authorities to coordinate supervision, especially when an issuer, users and reserve assets are located in different jurisdictions.
The FSB’s 2025 review found that only 11 of the 28 jurisdictions it surveyed had completed stablecoin regulatory frameworks. Bailey said the mechanisms needed to oversee these arrangements internationally and respond to a crisis “remain immature or are not yet developed.”
The watchdog’s concern extends beyond crypto markets. In a report accompanying Bailey’s letter, it said a loss of confidence in a stablecoin could trigger a run, forcing the issuer to sell reserve assets and potentially affecting traditional financial markets. Large-scale redemptions could also lead to withdrawals from banks.
The FSB highlighted an additional challenge involving multi-issuer stablecoins. If users seek to redeem their holdings, demand could become concentrated on one issuer even when the assets backing the stablecoin are held in several jurisdictions. The issue resembles concerns previously raised by European Central Bank President Christine Lagarde in 2025 about redemption risks involving stablecoins issued both inside and outside the European Union.
AI guidance focuses on resilience
The FSB’s finalized AI practices address governance across an organization, the development and deployment of AI systems, cybersecurity and risks linked to third-party service providers. The guidance is intended to support responsible adoption of AI within the financial sector.
Bailey said AI required continued attention from financial institutions, alongside careful risk management. He also warned that sophisticated cyberattacks enabled by AI could weaken the resilience of major financial institutions and critical market infrastructure.
The concerns are shared by other regulators. European central bankers warned in July that advances in AI could amplify market volatility and cybersecurity threats. The FSB had proposed 12 practices for responsible AI adoption in June before finalizing the guidance for discussion at the G20 meeting.
Moneyiar market picture
Moneyiar data at 09:54 on October 13, 2026, showed mixed declines among the listed digital assets:
- TRON (TRX): $0.3293431909, down 0.63% over 24 hours and 2.11% over seven days.
- Cronos (CRO): $0.0593223906, down 3.71% over 24 hours and 12.72% over seven days.
- Polygon (prev. MATIC) (POL): $0.1042866873, down 1.28% over 24 hours and 4.69% over seven days.
The supplied Moneyiar data did not include a price for Polygon (MATIC).
