Global watchdog flags stablecoin risks, AI threats ahead of G20

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.

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.

He also urged G20 members to support the FSB’s newly finalized practices for responsible AI adoption in the financial sector.

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