IMF’s Li Bo Highlights Stablecoin Regulatory Challenges – Coincu

Li Bo, Vice President of the International Monetary Fund, addressed stablecoin regulatory challenges at the Summer Davos 2025.

His discussion on regulatory frameworks may reshape expectations for stablecoin issuers globally, potentially altering compliance landscapes.

Li Bo Calls for Clear Stablecoin Classification

IMF’s Vice President Li Bo has raised concerns about stablecoins requiring clear classification as either currency or financial assets, during the Summer Davos event. This classification determines how they will be regulated across countries under different legal frameworks.

Li Bo’s statements have brought attention to the urgent need for established regulatory systems, particularly addressing whether stablecoins fall under M0 or M2 monetary categories. This differentiation impacts anti-money laundering policies.

“There are currently numerous regulatory experiments and explorations regarding digital currencies or stablecoins worldwide. Whether in the United States, Europe, or Asia, many countries are striving to establish appropriate legal and regulatory frameworks for stablecoins, but there are still many issues to be resolved.” – Li Bo, Vice President, IMF.

Market observers note that while immediate financial impacts are uncertain, such high-profile discussions signal a growing emphasis on compliance, likely affecting major stablecoins like USDT and USDC.

Regulatory Clarity: Impact on USDT and USDC Stability

Did you know? The classification of stablecoins can significantly impact their regulatory treatment and market acceptance.

CoinMarketCap data indicates that Tether USDt (USDT) holds a market cap of $formatNumber(156731912664, 2) with a trading volume reaching $formatNumber(69516346473, 2), despite a recent -0.04% 24-hour price dip. With a circulating supply of formatNumber(156691510869, 2)USDT remains stable at $1.00 amidst market fluctuations.

The Coincu research team notes that clearer regulatory classifications could alleviate market volatility, offering institutional investors stable grounds for engagement. This evolving landscape presents opportunities for new frameworks to support stablecoin growth, balancing compliance and innovation.