IOSCO's Vision on Stablecoins, DeFi, and Finfluencers
The International Organization of Securities Commissions (IOSCO) has shared its perspective on stablecoin arrangements, decentralized finance (DeFi), and "finfluencers." The organization is preparing a crypto regulation report, scheduled for consultation in Q2 2023, with final recommendations to be published by the end of the year.
Fintech Task Force Focuses on Decentralized Assets
IOSCO's work program for 2023–24 outlines two major workflows dedicated to decentralized assets. The Fintech Task Force will address crypto and digital assets in the first workflow, while the second will cover decentralized finance (DeFi). The DeFi consultation is set to begin in Q3 of 2023.
Investor Protection at the Core of IOSCO's Digital Market Approach
The IOSCO work program text emphasizes investor protection as a central focus in both areas of the digital market. The organization aims to support the development of sustainable and innovative capital markets while enhancing investor protection, maintaining market integrity, and reducing systemic risk.
National Regulators Urged to Enhance Supervisory Capacities
In 2022, IOSCO published reports on DeFi, stablecoins, and influencers. The organization recommends that national regulators develop regulatory channels for reporting consumer complaints about misleading and illegal promotions and evidence-tracking processes to manage online information's fast pace and changing nature.
Understanding the DeFi Market and Creating Relevant Legislation
IOSCO encourages national regulators to gain a granular and holistic understanding of the DeFi market, which could improve their ability to create relevant legislation.
IOSCO and BIS Define Stablecoin Arrangements
In their 2022 report on stablecoins, IOSCO and the Bank for International Settlements (BIS) defined the stablecoin arrangement as a combination of functions that provide an instrument for payment and/or store of value.
About the International Organization of Securities Commissions
The IOSCO is an association of securities and futures regulators. Its board comprises 35 regulators and top executives from organizations such as the United States Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, and the United Kingdom Financial Conduct Authority.
