The Bank for International Settlements (BIS) has introduced new rules that could have a significant impact on stablecoins such as Tether USDT and Circle USDC, which operate on public blockchains.
On July 17, the Basel Committee on Banking Supervision published a report detailing new requirements for banks' exposure to cryptoassets. Banks must now provide detailed information about their cryptocurrency activities and adhere to strict liquidity standards.
BIS has tightened the criteria for stable coins to qualify for "group 1b" preferences, which will likely lead to tighter controls on #USDT and #USDC .
The move coincides with the release of a consultation paper by the Hong Kong Monetary Authority on the licensing regime for stable coins. Industry leaders have expressed concern, with Caitlin Long, CEO of Custodia Bank, criticizing the BIS for excluding public #blockchain stablecoins in favor of licensed ones. She suggested that the U. S. may not follow these new guidelines.
On the contrary, at a recent Coinbase event, Blackrock's head of digital assets spoke in favor of public #blockchains over private ones. However, BIS executives recommend that banks use authorized blockchains such as JP Morgan's JPMCoin. State Street is also reportedly planning to launch its own stablecoin, which could further undermine the status of stablecoin in the public blockchain market.
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