FedMSB Launches Standards Body to Tame the Stablecoin 'Wild West'

NEW YORK, NY – December 02, 2025 – In a significant move to bring order to the burgeoning digital dollar ecosystem, the Federal Money Services Business Association (FedMSB) today announced the launch of the Stablecoin Standards Authority (SSA). This new, independent body aims to establish a bedrock of reliability, governance, and transparency for U.S. dollar-denominated stablecoins, a sector that has long been characterized by fragmentation and a lack of unified best practices.

The initiative arrives at a critical juncture, as stablecoins transition from a niche crypto-asset into a foundational component of modern finance, underpinning everything from global remittances to emerging decentralized finance (DeFi) applications. The SSA’s mission is to provide a clear, professionally vetted framework that can be adopted by issuers, financial institutions, and technology providers, potentially paving the way for broader institutional and consumer trust.

An Industry-Led Push for Order

At its core, the SSA is an industry-led effort to self-regulate by establishing clear best practices. FedMSB, a national trade association representing a wide spectrum of the non-bank financial sector from digital payment platforms to traditional money transmitters, has been careful to position the new authority as a standards-setter, not a government regulator. The SSA will not have supervisory or enforcement powers; instead, it will function as a professional body focused on developing and publishing practical guidelines.

"Stablecoins have become an increasingly important component of modern digital financial architecture, yet the industry continues to operate without unified standards," said Van Young, Chair of FedMSB, in the announcement. "The Stablecoin Standards Authority is intended to create an evidence-based foundation that supports innovation while safeguarding market integrity, sound risk management, and public trust."

The SSA’s work will be structured around five core domains:

• Technical Standards: Defining best practices for reserve structures, smart contract security, operational resilience, and the complex challenge of cross-chain interoperability.
• Compliance and Governance: Establishing clear expectations for Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, data governance, and enterprise risk management.
• Transparency and Reporting: Emphasizing high-quality, frequent reserve disclosures and consistent financial reporting, a common pain point and source of market skepticism.
• Education and Research: Convening working groups and seminars with regulators, academics, and industry players to foster shared understanding.
• Voluntary Certification: Offering a formal assessment program for issuers who wish to be benchmarked against the SSA’s criteria, providing a potential seal of approval for the market.

This comprehensive approach signals a concerted effort to address the multifaceted risks and opportunities of stablecoins, moving the conversation from abstract principles to concrete, operational standards that can be implemented and audited.

Navigating a Shifting Regulatory Landscape

The SSA's launch is not occurring in a vacuum. It is a strategic response to a landscape where government action is becoming increasingly likely. The timing follows the passage of the landmark GENIUS Act, which established a federal statutory foundation for payment stablecoins and mandated a government review of technologies to combat illicit finance. FedMSB itself has been an active participant in this dialogue, submitting detailed recommendations to the Treasury on how its members can help mitigate financial crime in the digital asset space.

Furthermore, the accounting profession has already begun its own standardization push with the American Institute of Certified Public Accountants (AICPA) releasing its 2025 Stablecoin Reporting Framework. This provides a crucial foundation for the SSA's work on transparency, ensuring that industry best practices align with professional auditing and accounting standards.

This context raises a critical question: can an industry-led body like the SSA preempt or merely complement formal government regulation? Proponents argue that a private-sector body, composed of experts deeply embedded in the technology, can move more nimbly than government agencies to create detailed, practical standards. By proactively addressing concerns around stability and illicit use, the industry may be able to shape future legislation and demonstrate that it can manage its own risks effectively. However, skeptics may view it as a stopgap measure, arguing that only government regulators with enforcement powers can truly protect consumers and ensure financial stability. The SSA’s success will likely depend on its ability to gain widespread adoption and prove its standards are rigorous enough to earn the confidence of both the market and policymakers in Washington.

The AmCoinX Index: A New Benchmark for Trust

Perhaps the most ambitious component of the new initiative is the development of the American Stablecoin Index, or AmCoinX. Billed as a benchmark to track the stability, transparency, and market behavior of U.S. dollar-backed stablecoins, AmCoinX aims to function much like a Wall Street stock index, providing a clear, comparable ranking of different tokens.

Set to launch at the 2026 MSB 2.0 Summit, the index represents a powerful tool for shaping market behavior. By creating a public scorecard, the SSA could incentivize stablecoin issuers to adhere to its standards to achieve a higher ranking, fostering a competitive race to the top on compliance and transparency. For institutional investors, corporate treasurers, and payment providers, such an index could be invaluable, transforming the complex task of due diligence into a more streamlined process of consulting a trusted benchmark.

The credibility of AmCoinX will hinge on the transparency and robustness of its methodology. While precedents exist for cryptocurrency indices from providers like Bloomberg and S&P, an index focused on qualitative factors like governance and transparency, in addition to quantitative stability metrics, is a novel undertaking. Its success will depend on the SSA's ability to create a fair, objective, and manipulation-resistant system that the market perceives as a legitimate measure of quality.

Building a Framework for the Future

The SSA's governance structure is designed to foster broad consensus. A Steering Board composed of technology, compliance, and risk professionals from FedMSB's diverse membership will provide oversight, while topic-specific working groups will handle the technical drafting. Critically, all draft standards will be published for public comment, inviting participation from regulators, academics, and civil society.

"The SSA is designed as an open and collaborative standards organization," noted Peter Tang, a member of the SSA Steering Board. "Our mission is to provide practical, consensus-driven guidance that supports issuers, service providers, and oversight bodies as stablecoin activity continues to evolve."

An initial workplan is already in place, starting with an inaugural white paper on baseline standards, followed by an annual report beginning in 2026 to track adoption and emerging risks. A pilot certification program will allow select issuers to test the standards in real-world environments, providing a crucial feedback loop. Through this phased and collaborative approach, the FedMSB is not just launching an authority; it is attempting to architect the very infrastructure of trust for the future of the digital dollar.