Global watchdog flags stablecoin risks, AI threats ahead of G20

What happened

In a letter published Monday, FSB Chair Andrew Bailey warned that cross-border mechanisms for stablecoin oversight and crisis management “remain immature or are not yet developed.” In its 2025 review, the FSB found that 11 of 28 surveyed jurisdictions had finalized stablecoin regulatory frameworks.

The G20 brings together the world’s major economies to coordinate financial policy and regulatory priorities. These concerns echo what regulators have previously raised.

The Financial Stability Board flagged cross-border stablecoin risks and AI-related cybersecurity threats while urging G20 policymakers to support stronger safeguards. The Financial Stability Board (FSB), a global financial watchdog, has outlined financial stability risks associated with artificial intelligence and regulatory concerns surrounding stablecoins.

He also urged G20 members to support the FSB’s newly finalized practices for responsible AI adoption in the financial sector. The FSB submitted the letter to Group of Twenty (G20) finance ministers and central bank governors ahead of their Thursday meeting.

Key facts

• In its 2025 review, the FSB — found: that 11 of 28 surveyed jurisdictions had finalized stablecoin regulatory frameworks