Here's the 'Final Guidance' on 'Stablecoin Arrangements' by BIS and IOSCO
The Bank for International Settlements (BIS) wants to create a set of standards for the stablecoin industry that will cover payments, clearings, and settlements.
In a report released today and shared with Cryptonews.com, the BIS’ Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions (IOSCO) outlined their “final guidance” on “stablecoin arrangements.”
The IOSCO is a body that creates global standards for the securities markets in some 115 jurisdictions.
The organizations also stated, in a press release that “recent developments in the cryptoasset market” had “again brought urgency for authorities to address the potential risks posed by cryptoassets, including stablecoins more broadly.”
The bodies stated that what they termed a “systemically important” “stablecoin arrangement” would need to ensure that it has “appropriate governance arrangements” in place.
Token issuers also need to ensure they have an ownership and operational structure that “allow for clear and direct lines of responsibility and accountability,” the bodies wrote.
The report’s authors also emphasized the need for transparency in this regard, and a governance structure that “allows for timely human intervention as and when needed.”
The authors underlined the importance of risk management, stating that stablecoin operators should “regularly review” all “material risks” inherent to dealing with related parties in their ecosystems. These could include “important financial market infrastructures,” as well as “settlement banks, liquidity providers, validating node operators and other node operators, or service providers.”
Elements of “settlement finality” are also vital, the authors added, as stablecoin operators
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