On 5 October 2021, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a consultative report that proposes guidance on the application of the Principles for Financial Market Infrastructures (PFMIs) to systemically important stablecoin arrangements (SAs), including the entities integral to such arrangements.

The proposed guidance focuses on a subset of the PFMIs for which the CPMI and IOSCO consider that guidance is warranted in light of notable features of SAs as compared to existing financial market infrastructures. The guidance is intended for systemically important SAs as they design, develop and operate their services and arrangements, including SAs that have the potential to become systemically important after launch; and by regulatory, supervisory and oversight authorities as they carry out their respective responsibilities for systemically important SAs.

The consultative report does not cover issues specific to stablecoins denominated in or pegged to a basket of fiat currencies (multicurrency SAs), as they will be covered in future work to consider whether the guidance is sufficient to provide clarity to multicurrency SAs when seeking to observe the PFMI.

The deadline for comments on the consultative report is 1 December 2021.

Leave a Reply

Your email address will not be published. Required fields are marked *