G20 - Crypto's Rapid Rise Outpaces Global Regulators

The Financial Stability Board warned on October 16, 2025, that global crypto regulation lags significantly. Rules across 29 major jurisdictions remain inconsistent, with uneven enforcement. FSB Secretary General John Schindler noted crypto assets ignore borders, posing risks to financial stability without unified standards. Rapid Market Growth Raises Stakes The crypto market doubled to $4 trillion in a year, with stablecoins up 75% to $290 billion. Few countries have robust stablecoin regulations, despite U.S. steps via the GENIUS Act. Offshore platforms exploit weak oversight, increasing potential for systemic issues. FSB Pushes for Global Coordination The FSB proposed eight measures to standardize rules and enhance cross-border monitoring. Building on 2023 reforms, these steps urge faster adoption to close gaps. Current risks are limited, but growing institutional links demand urgent action. Post-Crisis Urgency Drives Warning The alert follows 2022’s FTX and TerraUSD/Luna collapses and a recent $20 billion market drop. Varying national policies struggle to address digital asset spillovers, amplifying calls for harmonized global frameworks.