On 7 June 2025, the chair of the Financial Stability Board (FSB), Klass Knot, addressed the 93^rd Group of Thirty (G30) Plenary and shared his thoughts regarding financial innovation and stability. He underscored the imperative for regulators to maintain vigilance and adaptability in the face of rapid financial innovation.

Key highlights from Mr Knot’s remarks include:

• The FSB does not aim to hinder innovation but will seek to ensure that it develops a framework to mitigate risks relative to the characteristics or functions of innovative financial products.  
• To address the risks of stablecoins the FSB has set guardrails for their regulation, supervision and oversight but to avoid regulatory arbitrage, consistent implementation across jurisdictions is critical.
• Cross-border payments also remain an area of focus for the FSB and it has been working with stakeholders like the Committee on Payments and Market Infrastructure to align technical standards, as well as legal, regulatory and supervisory frameworks.
• The FSB’s task is to strike the right balance between fostering innovation and safeguarding financial stability.

Conclusion

Mr Knot’s address at the G30 Plenary underlines the FSB’s proactive stance in balancing innovation with financial stability. He emphasises authorities must work together to implement a universal regulatory framework that addresses the risks imposed whilst ensuring a payments eco-system that provides value and competitiveness.