US Crypto & Policy Watch: Global Financial Regulatory Body - Need Robust Oversight of Crypto Assets — Proposed Rules Coming In October

The Financial Stability Board, a group composed of regulators from around the world, issued a statement this week calling for regulation of crypto assets that is “commensurate” with the risks they pose to the global financial system and said they plan to unveil a proposed set of rules in October.

“An effective regulatory framework must ensure that crypto-asset activities posing risks similar to traditional financial activities are subject to the same regulatory outcomes, while taking account of novel features of crypto-assets and harnessing their benefits,” the FSB said.

The FSB is an international body that monitors and makes recommendations for regulation and guarding against risks to the global financial system.

The FSB voiced its concern that the failure of a crypto asset firm, in addition to large losses by investors, could have a contagion effect on other parts of the crypto ecosystem. And “it may have spill-over effects on important parts of traditional finance such as short-term funding markets,” it warned.

The FSB views these assets as being predominantly used for speculative purposes, with many not having or not complying with…