The Bank of International Settlements (BIS) has issued new guidance that threatens the future of permissionless stablecoins like Tether’s USDT and Circle’s USDC. On July 17, 2024, the Basel Committee on Banking Supervision released its final report on banks’ crypto-asset exposure, tightening criteria for stablecoins.
Historically, this marks a significant regulatory shift as BIS favors permissioned stablecoins for preferential treatment. This guidance, to be implemented by January 1, 2026, could severely restrict the use of major permissionless stablecoins.
A standout feature of this guidance is its emphasis on stability and security, aligning with BIS’s broader goals. Notably, Caitlin Long criticized this move, stating it favors permissioned stablecoins and potentially sets the US back in crypto leadership.
With the new BIS rules, the landscape for stablecoins is set to change, highlighting the strategic importance of regulatory compliance for future growth in the crypto sector.
