FOR IMMEDIATE RELEASE (Washington, DC – 6 March 2025) The Bretton Woods Committee is
pleased to announce the release of our latest report: Unlocking Stablecoins: Exploring
Opportunities and Risks.

“If properly regulated, stablecoins can play a transformative role in the financial system, improving
efficiency, expanding financial access, and lowering costs for businesses and consumers,” said
Corey Then, Vice President and Deputy General Counsel, Global Policy at Circle and an author of
the report.

The report emphasizes the need for clear regulatory frameworks in order to unlock the full potential
of stablecoins. Stablecoins offer benefits to multiple sectors including cross-border payments,
remittances, merchant payments, capital markets, and foreign exchange. They have become vital
tools in emerging markets where local currencies are often unstable.

With most stablecoins denominated in US dollars, strong American leadership in stablecoin
regulation would enhance global market efficiency, financial stability, and dollar primacy.

“The United States, as the issuer of the world’s primary reserve currency, has an opportunity to help
shape global stablecoin regulations,” said William C. Dudley, Co-Chair of the Working Group.
“Timely action would allow the U.S. to contribute to the development of regulatory standards that
support global financial stability and economic growth.”

The report identifies key risks that need to be addressed by any regulatory framework:

• Regulatory and Governance Risks
• Macroeconomic and Financial Stability Risks
• Operational and Technological Risks

To mitigate these risks regulators should ensure stablecoins have:

• Deep connections to existing banking and payments systems to allow for greater
  stability and a greater ability to exchange assets for fiat currency in a timely manner.
• A strong reserve ratio that should always match or exceed the amount of the stablecoins in
  circulation to maximize stability and trust.
• A high degree of transparency as the basis for all reserve holdings, with regular accounting
  from third party firms and frequent disclosures from any issuers.

Strong guardrails will also be needed to ensure adherence to anti-money laundering and counter-terrorism financing standards so that stablecoins are not being used to finance illicit activities.

About the Bretton Woods Committee: The Bretton Woods Committee (BWC) is the preeminent non-profit organization dedicated to effective global economic and financial cooperation. BWC demonstrates the value of multilateralism and enhances the performance of international financial institutions (IFIs) through public dialogue, advocacy, and policy analysis.

Media Contact:
Blake Ledna, Program Manager
bledna@brettonwoods.org
+1 847 421 5106