The International Monetary Fund (IMF) has issued new guidance on how governments should address the risks posed by the fast-growing stablecoin sector. The study emphasizes that regulatory regulations alone are insufficient; strong economic policies and international cooperation are required.
IMF warns of fragmented stablecoin oversight
The IMF’s Understanding Stablecoins report reviews how regions, including the US, UK, Japan, and EU, regulate stablecoins. The policies are improving but still vary between jurisdictions.
The IMF noted that stablecoins use many structures and technologies, causing fragmented regulation. This patchwork increases inefficiency, especially as more stablecoins appear on many blockchains and exchanges.
According to the report, poor interoperability across stablecoins might impede cross-border transactions and complicate regulatory monitoring.
Strong Economic Policies Should Come First, IMF Says
While regulation is important, the IMF recommends that governments initially rely on strong macroeconomic policies and institutions to protect against systemic risks. These include market volatility, liquidity problems, and vulnerability to global financial fluctuations caused by stablecoin adoption.
The panel stated that global coordination is essential. Without a coordinated approach, governance gaps may allow risks to traverse borders, worsening financial vulnerabilities.
What Supports the Biggest Stablecoins?
The IMF also analyzed the reserve assets that support the leading stablecoins. Tether (USDT) and Circle (USDC), the two largest by market value, are mostly backed by highly liquid US government securities:
USDT: Approximately 75% of reserves are held in short-term US Treasury securities.
USDC: Treasurys account for approximately 40% of total reserves.
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According to the analysis, Tether owns approximately 5% of its reserves in Bitcoin, providing an additional layer of exposure to market volatility.
Although most stablecoins are pegged to the US dollar, a few issuers provide euro- or other currency-backed choices. According to Cointelegraph, the global stablecoin market is already worth more than $300 billion as of December.
U.S. Advances Stablecoin Rules Under the GENIUS Act
Following President Donald Trump’s signature of the GENIUS Act earlier this year, the United States is moving forward with a more organized regulatory framework for payment stablecoins.
According to Cointelegraph, a recent update from blockchain security firm CertiK indicates that the new law has already begun to shift liquidity into more specific pools for stablecoins based in the United States and the European Union. This demonstrates that regional regulatory borders are starting to take shape.
Why This Matters
Stablecoins have emerged as a critical component of the digital asset ecosystem, acting as a stable medium of exchange and a link between crypto markets and traditional banking. The IMF’s recent ideas demonstrate that, while regulation is important, broader economic governance and international cooperation will ultimately play a determining role in managing stablecoin risks.
The Cointelegraph findings highlight how the future of stablecoin governance is likely to be determined by both domestic legislative strength and governments’ ability to effectively collaborate on global norms.