An Interview with Stablecoin Standard

In an exclusive interview with BitcoinWorld, we had the chance to sit down with Beth Haddock, Global Policy Lead at Stablecoin Standard, the industry body for stablecoin issuers worldwide. In this interview, we discuss how Stablecoin Standard actually works.

Can you explain what Stablecoin Standard’s mission is and how it aims to impact the development and adoption of stablecoins globally?

Representing 28 global members, partners, and issuers, Stablecoin Standard is committed to driving global adoption of digital currencies through education, best practices, and policy engagement. In my new role as Global Policy Lead, I will lead the launch of an initiative to establish new global standards, which will be unveiled at our annual Flagship Event in Singapore during Token 2049 week. These standards will enable issuers and partners to demonstrate their commitment to responsible innovation, highlighting stablecoins as a key solution for cross-border payments and a powerful enhancement to traditional financial options for consumers and entrepreneurs.

What are the key operational, transparency, and product standards that Stablecoin Standard advocates for and why are they important to the industry?

The new standards, which will be unveiled at our flagship event at Token 2049 in Singapore, focus on three key areas: 1) Operational resilience through financial stability, 2) Transparency and business ethics focused on consumer protection, and 3) Commitments to issuers and products, including a financial crime prevention program. These standards, in my opinion, are the foundation of responsible innovation. They are crucial to ensuring that stablecoins, as part of the blockchain and crypto community, clearly demonstrate their commitment to good business practices as the industry grows and innovates.

How do you see stablecoin regulation evolving? And what challenges do you foresee in achieving global regulatory harmonization?

The Stablecoin Standard recently released a comprehensive inventory of current and proposed stablecoin regulations for its members, reflecting the vast and evolving landscape. I expect to see continued changes that will reinforce key themes, such as labeling a product as a “stablecoin” only if it can be demonstrated to be resilient to market stress and operational challenges. We can also expect to see a growing consensus around the need for timely, transparent reporting so that anyone buying a stablecoin can trust the accuracy of information about the underlying asset and the design of risk mitigation.

While global regulatory harmonization may vary in detail, particularly for algorithmic stablecoins, fundamental principles such as consumer protection and product transparency are already widely recognized. As regulation evolves, I foresee a focus on protecting consumers from fraud and ensuring that product features are clearly presented to enable informed decision-making. In times of volatility, we may see issuers who cannot back up their claims of resilience and stability. When they fail, we will see momentum to clear up any confusion around the obligations to use the term stablecoin responsibly.

Can you elaborate on the role of compliance and regulatory strategy in both traditional and decentralized finance? And how does your experience inform your work at Stablecoin Standard?

Regulatory strategy is the engine that drives the growth of many companies. In my opinion, a company, whether in traditional finance or DeFi, will not thrive without a strategy that accurately assesses risk and implements smart controls through technology and thoughtful product design. This is especially true for innovators in stablecoins, DeFi, or other blockchain projects, where the absence of legacy bureaucracy allows them to operate fairly and legally while remaining agile.

At Stablecoin Standard, my focus is on leveraging this unique opportunity to innovate not only in payment processing, but also in regulatory compliance. In my book, Triple Bottom Line ComplianceI challenge the traditional compliance status quo, which, as the Transparency International Corruption Index shows, has not been as effective in preventing fraud as it could have been. The new standards we have developed are principles-based, designed to promote sound business judgment while rejecting rationalizations that compromise those principles. This approach aligns with my belief that we can and must do better in both innovation and compliance.

What specific initiatives is Stablecoin Standard currently working on to promote transparency and trust within the stablecoin market?

As we finalize the first set of standards that we will announce in the coming weeks, the key initiatives we are currently working on are focused on building awareness, credibility and trust to drive adoption of the new standards across the industry.

How do you work with financial institutions and fintech companies to align their operations with the standards set by the Stablecoin Standard?

We are creating an ecosystem that includes not only issuers, but also partners and policy ambassadors. While aligning to our standards is voluntary, these standards already reflect many of the requirements that financial institutions and fintechs are accustomed to. Our involvement extends beyond events like the upcoming Token 2049; it includes actively collaborating with stakeholders in our advisory board, issuer group, and partner group within the Stablecoin Standard ecosystem. We are excited to grow this ecosystem with the launch of the new standards and invite anyone interested in joining us to reach out.

How important do you think it is to have clear and consistent regulations for stablecoins? And what impact could this have on their mainstream adoption?

In my opinion, mainstream adoption depends on trust. As the Edelman Trust Barometer shows, companies that build credible brands thrive. While clear and consistent regulatory guidelines are important, I believe that, especially with the new Stablecoin Standards, issuers already have the tools to build that trust. Regulatory developments need to be managed and addressed, but they don’t have to hinder mainstream adoption.

What are your long-term goals for Stablecoin Standard and what role do you think the Standard will play in shaping the future of the stablecoin ecosystem?

My long-term goal for Stablecoin Standard is to be the driving force that helps innovators disrupt traditional money movements. The potential for stablecoins is immense, and as the Harvard Business Review recently highlighted, there is a fierce race to lead this sector. The mission of Stablecoin Standard is to provide challengers with what they need to win that competition and be the forum where innovation in the sector flourishes.