FSB chair tells G20 that cross-border cooperation on stablecoins is still in its infancy

Victoria Shinder13 October 2026, 06:542 min read

The chair of the Financial Stability Board, Andrew Bailey, has sent his letter to G20 finance ministers and central bank governors ahead of their meeting on 15 October 2026. The letter is dated 8 October and was published with the FSB's note on global stablecoins.

Risks named. Bailey repeats the risks from his August letter: heightened volatility in sovereign bond markets and changes in the investor base that raise the chance of abrupt adjustments; vulnerabilities in private credit from tighter financing, liquidity mismatches, valuation uncertainty and opacity; and AI-related risks, including a market reassessment of AI-related valuations that could trigger a broader correction and increasingly sophisticated AI-enabled cyber threats.

Stablecoins. The letter says global stablecoin arrangements are inherently cross-border, while national regulation is taking shape at different speeds and cross-border cooperation is "still in its infancy". It adds that global stablecoins continue to feature in discussions of fraud and related financial crime, particularly those operating from lightly regulated jurisdictions. The accompanying note finds that the interaction of regulatory frameworks across borders, including the treatment of foreign-issued stablecoins, remains uncertain or undefined in many jurisdictions, and that mechanisms for cross-border oversight, crisis management and cooperation in stress or insolvency are immature or not yet developed. Bailey asks G20 members to keep a clear financial-stability focus as they build their stablecoin frameworks and to make them work together.

AI. The FSB is delivering its first response on AI: Sound Practices for the Responsible Adoption of AI, a toolkit covering organisation-wide governance, lifecycle management, cyber risk and third-party services. Bailey urges the G20 to champion them and says safe adoption of AI should remain on the FSB's agenda next year.

Other deliverables. A consultation report on regulatory and supervisory modernisation, to be finalised in 2027, and the 2026 implementation monitoring review led by Randal Quarles, which looks at how the FSB's own policy process could better support consistent implementation.

Why it matters for crypto markets. The letter does not propose new rules. It does set the frame in which G20 members will discuss stablecoins this week: uneven national regimes, issuers choosing lighter jurisdictions, and no tested arrangement for a cross-border failure.

Source: FSB, "FSB Chair's letter to G20 Finance Ministers and Central Bank Governors: October 2026" — https://www.fsb.org/2026/10/fsb-chairs-letter-to-g20-finance-ministers-and-central-bank-governors-october-2026/