The industry association has asked the Financial Stability Board, and other international standard-setting bodies, to generate, adopt and use a global taxonomy as it would drive a common understanding of whether a global stablecoin (GSC) or cryptoasset fits a certain classification or definition.

This would reduce the variance between jurisdictions and curb regulatory dissonance, the WFE argues,

Further, a periodic review of the taxonomy would ensure that forms of GSC and cryptoassets, which have matured and may constitute a new, viable and commonly used product, can be incorporated and regulated accordingly.

The WFE has asked the FSB to consider three areas for further work:
• Creating classifications via a taxonomy for all GSC and cryptoassets
• Application of the recommendations to all cryptoassets
• Applying the cross-border co-operation recommendations and information-sharing requirements to the supervision of all those trading GSC/cryptoassets

Regulators should co-operate to share information on global stablecoins and cryptoassets and also on their issuers and the platforms on which they are traded, the WFE says. The exchange body fears that without formalised co-ordinated approaches to enforcement and oversight in general, issues around market integrity and consumer protection will not be fully addressed.

Nandini Sukumar, chief executive officer of the WFE states: “We support the overall ambition of seeking to address fragmented regulatory approaches by moving to an outcomes focus, applying the ‘same business, same risk, same rules’ principle; and building on the need for cross-border co-operation in the supervision of global stablecoin, both for wholesale and retail.”