BIS favors licensed blockchain stablecoins including JPM Coin over USDT, USDC

BIS favors licensed blockchain stablecoins including JPM Coin over USDT, USDC

The Basel Committee on Banking Supervision (BCBS), the international standard-setter for banks under the auspices of the Bank for International Settlements (BIS), has released its final report on its proposals to introduce public disclosure requirements for banks’ cryptoasset exposures. The guidelines include more favorable regulatory treatment for stablecoins issued on permissioned blockchains, such as JP Morgan’s own JPM Coin. This could potentially put pressure on stablecoins issued on permissionless blockchains, such as USDT and USDC. The BCBS report notes that stablecoins backed by fiat currencies and issued on permissioned blockchains pose less risk to the financial system than those issued on permissionless blockchains. This is because permissioned blockchains are more centralized and therefore subject to greater oversight. The report also notes that stablecoins should be subject to the same regulatory requirements as other financial instruments that serve a similar purpose. This includes requirements for transparency, risk management, and consumer protection. The BCBS’s guidelines are likely to have a significant impact on the stablecoin market. They could lead to increased adoption of stablecoins issued on permissioned blockchains, such as JPM Coin. They could also put pressure on stablecoins issued on permissionless blockchains, such as USDT and USDC.