Key Regulatory Changes for Stablecoins Proposed
On October 22, 2025, the Swiss Federal Council initiated a regulatory overhaul for stablecoins and crypto institutions with a formal consultation in Switzerland.
This move aims to strengthen the financial ecosystem, boost market appeal, and integrate innovative technologies, potentially impacting institutional adoption and regulatory practices in the crypto space.
Enhancing Market Development and Financial Integration
The Swiss Federal Council initiated a regulatory overhaul on October 22, 2025, focusing on stablecoins and crypto institutions. Their proposal aims to amend the Financial Institutions Act to enhance market development.
Involving key entities like the Swiss Federal Council, SIF, and FINMA, this initiative seeks to refine the legal framework. These changes could impact participants by boosting institutional involvement and facilitating novel financial technologies.
Potential Impact on Crypto Institutions and Market Activity
The proposal seeks to abolish the CHF 100 million deposit limit, potentially spurring growth in crypto institutions. This could lead to increased market activity and changes in institutional operations within Switzerland.
Financial implications include the creation of new licensing categories for stablecoin issuers, potentially increasing the competitiveness of Swiss financial markets. This move aims to align Switzerland with broader international regulatory standards.
Consultation Process and International Collaboration
As the consultation phase progresses, feedback may lead to adjustments impacting regulatory strategies. Collaboration with international markets could be strengthened, offering Switzerland a competitive edge.
Potential financial outcomes involve increased transparency and compliance requirements. Historical trends in Swiss fintech suggest possible increases in institutional adoption, driven by clarified regulations and market incentives.
On 22 October 2025, the Federal Council opened the consultation process on the amendment to the Financial Institutions Act. The bill is aimed at improving the framework conditions for the market development, locational appeal and integration of innovative financial technologies into the existing financial system...
SIF Fact Sheet, Federal Council