5 Under-Discussed Stablecoin Realities Banks Need To Address

Stablecoins, once confined to niche cryptocurrency conversations, are now part of mainstream financial discourse. Yet, many banks focus on the fundamental aspects, such as how stablecoins are pegged to real-world assets, without fully exploring the complexities that could directly affect their risk profiles and strategic decisions. Below are five critical, under-discussed realities around stablecoins that every bank should understand in greater depth.1. Regulatory Ambiguities and Global Divergence Complicate Stablecoin AdoptionRegulations governing stablecoins are not uniform, and this patchwork of rules can create operational headaches for any bank operating beyond a single jurisdiction. In the United States, there is ongoing debate over whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should oversee stablecoins, while European Union regulators are advancing the Markets in Crypto-Assets (MiCA) framework to streamline regulations a...