Andrew Bailey of the Bank of England Nominated to Head G20's Crypto Oversight Body FSB

Key Points to Know:

• Andrew Bailey, Governor of the Bank of England, has been nominated to be the next chair of the Financial Stability Board.

• Bailey also led the FSB's initiative on crypto regulation.

Andrew Bailey, Governor of the Bank of England, has been nominated to serve as the next chair of the Financial Stability Board (FSB), the G20's financial oversight body.

The FSB's Nomination Committee has put forward Bailey for a three-year term, starting in July, as announced in a statement on Monday.

The Group of Twenty (G20) assigned the FSB with the responsibility of coordinating the creation of a regulatory framework for crypto-assets. In July 2023, the FSB finalized its recommendations for regulating crypto-assets and global stablecoin arrangements, noting that these could pose greater risks to financial stability, according to the body's website.

Currently, Bailey serves as the chair of the FSB’s Standing Committee on Supervisory and Regulatory Cooperation. In this role, he oversaw the development of the FSB's global regulatory framework for crypto-asset activities, along with the implementation roadmap for crypto-assets.

"Andrew has consistently demonstrated his ability to foster collaboration, having led significant FSB reform efforts, including those related to crypto-assets and non-bank financial intermediation," said Klaas Knot, President of De Nederlandsche Bank and Chair of the FSB, in a statement. "This makes him well-suited to lead the FSB, focusing on the successful implementation of the reforms that have been agreed upon." Knot’s term as FSB chair will conclude in June.

Since Andrew Bailey became the Governor of the Bank of England in 2020, the central bank has taken the lead in various crypto and digital asset initiatives. The BoE is currently considering the creation of a digital pound and is working on regulating stablecoins—tokens backed by other assets—that could pose risks to financial stability. Additionally, the BoE announced last year that it would be conducting experiments with central bank digital currencies and distributed ledger technologies.