G20 finance ministers and central bank governors have pledged to develop clearer regulatory and supervisory frameworks for digital assets, while warning that financial stability and cross-border risks must remain central to the work.
The commitment was included in the G20 Chair’s Statement issued after officials met in Asheville, North Carolina, on 31 August and 1 September. The statement recognised digital assets as part of financial innovation that could contribute to economic growth and private-sector development.
G20 members said they would work towards regulatory systems offering defined routes for digital financial innovation, while preserving confidence in monetary and payment systems.
The initiative forms part of the group’s wider effort to modernise financial oversight, including work on financial stability, new technologies and payment infrastructure.
US Treasury Secretary Scott Bessent identified support for a digital asset ecosystem and improvements to cross-border payments as priorities for the United States’ G20 presidency in February. The Asheville talks were part of the 2026 Finance Track, with another ministerial meeting planned for October in Bangkok before the G20 Leaders’ Summit in December.
Stablecoins and cross-border payments
Stablecoins were given particular attention as G20 officials await further analysis from the Financial Stability Board (FSB).
The group expects the FSB to publish findings on the cross-border implications of global stablecoin arrangements. The work will also examine the sources and availability of stablecoin data, as well as potential shortcomings in the information currently available to regulators.
Financial authorities are focusing increasingly on cross-border use because stablecoins can move through payment networks without depending on the same infrastructure as traditional international bank transfers.
In June, crypto.news reported that the People’s Bank of China was monitoring stablecoin payments as officials assessed their possible impact on international payment networks and the monetary system.
Chinese central bank officials said stablecoins could play a bigger role in cross-border transactions and called for greater international co-ordination as their use expands. Beijing continues to restrict cryptocurrency activity while examining the potential effects of stablecoins and central bank digital currencies on global payments.
The UK and United States agreed in July to pursue closer co-operation on stablecoins, including regulatory standards, cross-border payments and tokenised financial markets.
Officials in both countries have been considering how regulated stablecoins issued in one jurisdiction might gain access to the other’s market. Their discussions have included one-to-one reserve requirements and protections for holders if an issuer becomes insolvent.
The G20 statement did not call for a single stablecoin licensing regime, nor did it set a timetable for countries to introduce identical rules. Instead, it supports progress on national frameworks while asking members to take account of opportunities and risks that extend beyond their own borders.
Payment systems are also a central part of the G20’s current agenda. Ministers and central bank governors reaffirmed their backing for the G20 Roadmap for Enhancing Cross-border Payments and urged countries to lengthen the operating hours of large-value payment systems.
They also called on jurisdictions to promote the use of the harmonised ISO 20022 messaging standard and enable financial services data to move across borders, subject to domestic laws and data security requirements.
Stablecoin activity increasingly overlaps with those payment priorities. The UK Financial Conduct Authority said cross-border payments were the strongest practical use case for stablecoins after feedback from banks, payment companies and crypto businesses during its Stablecoin Sprint.
Participants told the regulator that stablecoins could be especially valuable in markets where access to US dollars is restricted. The FCA found less evidence that UK consumers would want to replace existing domestic payment methods, although businesses might use stablecoin infrastructure for settlement.
G20 members continue to take different approaches. In May, Brazil’s central bank moved to prohibit virtual assets from being used for settlement on regulated eFX cross-border payment rails, while allowing cryptocurrency transfers outside those supervised channels.
The G20’s position leaves room for such differences, asking jurisdictions to assess cross-border opportunities and challenges through their own regulatory systems.
National rules continue to develop
Several G20 members have introduced domestic digital asset legislation while international bodies continue to work towards common standards.
In the United States, the GENIUS Act created the first federal framework specifically for payment stablecoins. Approved issuers will have to maintain one-to-one backing with eligible liquid reserve assets and meet requirements covering disclosure, supervision and redemption.
However, the implementation process is not complete. Federal regulators missed a 18 July deadline for several rules required by the legislation. The Office of the Comptroller of the Currency later set November as the target for its main regulations.
The framework is due to take effect on 18 January 2027, or 120 days after the main federal regulators finish their implementing rules, whichever comes first.
In the European Union, the Markets in Crypto-Assets regulation introduced a common licensing and supervisory system for crypto service providers and stablecoin issuers. Its transition period ended on 1 July, meaning firms without the necessary authorisation can no longer legally provide covered crypto services to EU customers under the framework.
Japan has also been restructuring its digital asset rules. Lawmakers passed amendments in July that classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act. The changes create a route towards domestic crypto exchange-traded funds, a separate 20% tax treatment and stricter market conduct requirements.
Japan’s Financial Services Agency subsequently created a dedicated crypto division for cryptocurrency and stablecoin supervision, digital payment planning and related policy work.
Stablecoins are regulated separately in Japan under the payment services framework. MUFG Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank are preparing jointly issued stablecoin transactions for fiscal 2026, after an FSA-backed pilot tested corporate cross-border payments.
Financial crime concerns
The G20 also placed financial crime within its digital asset discussions.
Officials renewed their support for the Financial Action Task Force (FATF) and urged countries with significant virtual asset activity to prioritise the effective implementation of FATF standards.
They backed risk-based supervision addressing money laundering, terrorism financing and proliferation financing. The statement also highlighted fraud linked to scam compounds and the use of artificial intelligence by criminals.
FATF and its regional bodies will oversee how those standards are implemented in different jurisdictions. The United States is due to host a FATF Learning and Development Forum in Dallas later this year as countries continue efforts to apply the organisation’s financial crime rules.
The G20 finance ministers and central bank governors are scheduled to meet again in Bangkok on 15 October. The US presidency will then conclude with the G20 Leaders’ Summit in Miami on 14 and 15 December.
