MAS Proposes Stablecoin Regulations with Interest Ban

The Monetary Authority of Singapore (MAS) has proposed legislative changes to regulate stablecoins. The plan would prohibit interest payments on MAS-regulated stablecoins, as well as require issuers to conduct stress tests and develop recovery plans.

The proposal also aims to strengthen customer safeguards and potentially open pathways for jointly issued and selected foreign-regulated stablecoins.

The consultation is part of the MAS's ongoing effort to balance financial stability with innovation in the crypto space.