Switzerland Takes a Step Towards Stablecoin Regulation
Switzerland has launched a public consultation on stablecoins, proposing a new regulatory framework for issuers under the supervision of the Financial Market Supervisory Authority (FINMA). The consultation, which will run until February 2026, aims to gather feedback from the public and industry experts on the proposed framework. 
The proposal outlines plans to create a new licensing category for payment instrument institutions that issue “stable blockchain-based tokens.” These institutions would be required to fully back these tokens with high-quality liquid assets, maintain segregated reserves, and disclose key information in a publicly available, FINMA-approved white paper. According to Dea Markova, policy director at Fireblocks, “Switzerland has taken the time to learn lessons – from the EU, the US and others,” and stablecoins could be a “game changer” for building the country’s tokenized asset and bond markets.
Key Aspects of the Proposal
The draft law requires issuers to notify FINMA at least 60 days before launching a stablecoin and ensures that holders have a legal right to redeem tokens at face value within a short period. Stablecoins issued abroad that are traded in Switzerland will be treated as crypto assets and not as legal payment instruments, unless they are issued domestically. Hany Rashwan, founder of 21Shares, believes that Switzerland’s stablecoin push could increase confidence in the monetary framework and “support the strength of the Swiss franc, its stability and sovereignty.”
Industry experts believe that stablecoins could strengthen the Swiss franc, and the country’s cautious approach will allow it to learn from others and avoid early missteps. The proposal is a significant step towards regulating the stablecoin sector in Switzerland, which has been a relatively late mover compared to other financial hubs such as Singapore and Dubai. With demand for stablecoins expected to skyrocket, several jurisdictions have initiated or accelerated measures to regulate the sector, including the European Union, Japan, and the United Kingdom.
Global Stablecoin Regulations
The introduction of the GENIUS Act in the United States, which came into force in July 2025, defines clear federal rules for fiat-backed stablecoins. Since then, major economies have made efforts to set standards for the issuance, custody, and redemption of stablecoins. Switzerland’s proposed framework is part of a broader trend towards regulating the stablecoin sector, which is expected to play a crucial role in the development of tokenized asset and bond markets. For more information, visit https://crypto.news/switzerland-opens-stablecoin-consultation-as-experts-see-potential-to-strengthen-franc/
