The Financial Stability Board (FSB) has issued a warning that fragmented global regulation of stablecoins and decentralized finance (DeFi) could increase financial risks. The FSB is urging for coordinated international rules on licensing, reserves, and redemption by 2026 to mitigate these risks. The board highlighted the uneven implementation of its 2023 recommendations and expressed concern over the $302 billion global stablecoin supply, which it views as a potential threat to financial stability.