#United States #New York #stablecoin #FedMSB #Market Integrity

Introduction

On December 2, 2025, the Federal Money Services Business Association (FedMSB) announced a significant milestone in the evolving landscape of digital finance—the establishment of the Stablecoin Standards Authority (SSA). This independent body aims to create uniform standards for U.S. dollar-denominated stablecoins, enhancing their reliability and governance.

Why the Need for SSA?

With the rise of stablecoins, there has been a pressing need for cohesive standards. Today, stablecoins play a crucial role in modern digital finance, facilitating payments, remittances, and even decentralized finance (DeFi) applications. However, the absence of unified protocols has raised concerns regarding transparency and market integrity. Van Young, Chair of FedMSB, emphasizes that the SSA will lay down a foundation, embracing innovation while ensuring sound risk management.

The Role of SSA

The Stablecoin Standards Authority will not serve as a regulatory agency. Instead, it will focus on setting professional standards, functioning within five core domains:

1. Technical Standards: These will cover reserve structures, smart contract design, security, operational resilience, and interoperability between different blockchain systems.
2. Compliance and Governance: The SSA will outline expectations for money services businesses (MSBs) concerning anti-money laundering (AML) and Know Your Customer (KYC) regulations, in addition to data governance.
3. Transparency Standards: Ensuring stablecoins disclose high-quality reserve information and maintain consistent financial reporting will be essential to building trust.
4. Education and Research: The authority will engage in creating white papers, hosting public seminars, and collaborating with industry experts and academics to enrich the understanding of stablecoin operations.
5. Voluntary Certification: Issuers can choose to undergo an assessment to benchmark their operations against SSA criteria, which could enhance their credibility in the market.

Governance Structure

A Steering Board will guide the SSA, comprising technologists, compliance experts, risk professionals, and leaders from the MSB sector. To foster collaborative development, the SSA will form topic-specific working groups focusing on areas like Technology and Security and Audit and Assurance. Draft standards are expected to be published for public comment, allowing a wider stakeholder input.

Peter Tang, a member of the SSA Steering Board, notes, "Our mission is to provide practical, consensus-driven guidance that supports issuers, service providers, and oversight bodies as stablecoin activity continues to evolve." This statement reflects the SSA's commitment to be an open and inclusive organization.

Context for Launch

The creation of the SSA follows notable developments, including the introduction of the AICPA's 2025 Stablecoin Reporting Framework and the recent passage of the GENIUS Act, which aims to establish a legal foundation for payment stablecoins. Together, these initiatives illustrate the growing momentum toward creating clear standards for the industry. This framework will serve to align the efforts of various stakeholders engaged in the burgeoning stablecoin market.

Initial Workplan and Future Directions

As part of its foundational work, FedMSB has planned:

• - Publication of a White Paper: Detailing baseline standards related to governance, technology, and transparency.
• - Annual Reporting: The SSA will issue a Stablecoin Standards Report starting in 2026, examining the landscape of standard adoption and identifying potential risks.
• - Public Consultation Programs: This initiative aims to involve a vast array of participants, including regulators, industry players, and academics.
• - Pilot Certification Program: This will enable select issuers to test synthetic environments, validating SSA standards in real-world scenarios.

Additionally, the SSA will oversee the development of the AmCoinX, the American Stablecoin Index, designed to monitor stability and transparency of U.S. dollar-backed stablecoins. The formal launch is scheduled for the 2026 MSB 2.0 Summit.

Conclusion

As the digital finance landscape undergoes rapid transformation, the SSA represents a proactive step towards fostering a standardized, transparent, and trustworthy environment for stablecoin utilization. By aligning industry practices and regulatory frameworks, the Stablecoin Standards Authority aims to sustain innovation while preserving the integrity of the evolving financial ecosystem.