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BIS says stablecoins closer to securities than money, need regulation

The Bank for International Settlements said stablecoins have a structure closer to exchange-traded funds than to money and called for global regulatory coordination. It warned that divergent national rules could lead to market fragmentation and regulatory arbitrage. BIS officials cited rapid growth in dollar-pegged tokens, redemption frictions and price dislocations, and risks that large-scale redemptions could spread stress to broader markets. Officials also flagged possible policy impacts and debated interest payments.