The Bank for International Settlements (BIS) has urged for swift and global regulation of stablecoins due to the current fragmented laws in various jurisdictions. According to a BIS survey of eleven jurisdictions, regulatory fragmentation is a significant obstacle in implementing stablecoins. BIS has emphasized the need for urgent regulation of these digital assets, stating that the lack of a single regulatory framework poses significant risks and can hinder the integration of stablecoins into the global monetary system.

Regulatory challenges in stablecoin issuances exist among different frameworks, with varying classifications such as banking, stocks, services, or payment methods. Additionally, differences in redemption policies and what constitutes a stablecoin have led to disparate regulatory strategies in various countries, including the United Kingdom, Singapore, Japan, and the United Arab Emirates.

BIS has identified gaps in global stablecoin regulation, including differences in reserve management and custodian requirements among jurisdictions. The report highlights the need for greater consistency in audit and liquidity requirements, as well as a better understanding of how stablecoins interact with other digital assets, including central bank digital currencies and tokenized funds.

The demand for harmonized regulation comes after BIS issued earlier stablecoin regulation suggestions in February. BIS aligns itself with the position of the International Monetary Fund and the Financial Stability Board.

Meanwhile, pro-crypto attorney John Deaton has criticized Senator Elizabeth Warren's views on stablecoin regulation. Deaton emphasized the industry's viewpoint, stating that Warren's fearful position on stablecoins entering the banking system is unfounded.

Warren has expressed concerns about security and national security threats, stating that new laws can worsen instead of lessen these risks. However, Deaton argues that the industry sees the potential benefits of stablecoins and believes that regulation should be balanced and carefully considered.