This decision comes after a meeting of the FSB's plenary, the sole decision-making body of the standard-setting and advisory organization. The FSB has been one of the main architects of global crypto policy and has been monitoring the global financial system for systemic risk.

The decision to extend its work on stablecoin risks is due to the challenges posed by the relatively higher levels of adoption and risks of global stablecoin arrangements in emerging market and developing economies (EMDEs). EMDEs face particular challenges for monetary policy and capital flow management when it comes to crypto-assets. The FSB will undertake further work to consider how these challenges can be addressed.

Stablecoin regulation has been a sticking point between the Group of 7 (G7) biggest industrialized nations and the larger G20. Those differences appear unresolved even as a G7 summit in Italy concluded last week. The FSB's work on stablecoin risks is crucial in addressing the challenges posed by the adoption of stablecoins in EMDEs.

The FSB's work on stablecoin risks is part of its broader efforts to address the financial stability risks associated with crypto-assets. The FSB has published a report on the financial stability risks from crypto-assets, which builds on the Financial Stability Surveillance Framework of the FSB to assess how crypto can affect financial stability at the global level.

In addition to its work on stablecoin risks, the FSB is also working on other initiatives to address the financial stability risks associated with crypto-assets. These initiatives include the development of a framework for the regulation, supervision, and oversight of global stablecoin arrangements, as well as the publication of a report on the financial stability risks from crypto-assets. The FSB's work on crypto-assets is crucial in addressing the challenges posed by the adoption of crypto-assets in EMDEs and promoting financial stability globally.