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Stablecoin Regulatory Gaps

Definition

Stablecoin regulatory gaps refer to the absence or inadequacy of specific legal frameworks and supervisory rules governing the issuance, operation, and backing of stablecoins. These gaps create uncertainty for issuers and users, potentially leading to market instability, consumer protection issues, or illicit finance risks. The lack of clear regulations can hinder the widespread adoption of stablecoins and pose systemic risks to the broader financial system. Addressing these gaps is a priority for financial authorities globally.