Cryptoassets and the Lack of International Regulatory Coordination

The international regulatory landscape for cryptoassets remains fragmented despite their rapid growth and consolidation. As interlinkages between crypto markets and traditional finance deepen, concerns about systemic risk, regulatory arbitrage and market integrity become increasingly pressing. Diverging national approaches – driven by strategic, political and economic interests – have hindered efforts to establish multilateral coordination. The United States, European Union, China and other jurisdictions have adopted starkly different policy stances, reflecting not only contrasting regulatory approaches but also geopolitical considerations. Stablecoins, in particular, have emerged as a new vector of monetary influence, with dollar-backed tokens reinforcing the global role of the US dollar while raising concerns over financial stability and extraterritoriality. While multilateral institutions continue to develop non-binding guidance, national governments are increasingly treating the digital asset’s regulation space as a domain of geopolitical competition.