In brief:
₿- Swiss is advancing a legal framework to enable stablecoin issuance, aiming to strengthen its global competitiveness.
₿- Banks are pushing for the right to issue stablecoins and tokenized deposits, warning that restrictive rules could weaken innovation.
Switzerland is taking a decisive step toward reinforcing its position in the global digital asset economy as proposed amendments to the Financial Institutions Act place stablecoins at the center of financial innovation policy. Backed in principle by the Swiss Bankers Association (SBA), the draft legislation aims to establish a clear legal foundation for stablecoin issuance while safeguarding financial stability and consumer protection.
Banks push for stablecoin issuance rights
Stablecoins are rapidly emerging as critical infrastructure for digital payments, tokenized finance, and blockchain-based settlement. Policymakers increasingly view regulatory clarity as essential for reducing legal uncertainty and attracting institutional capital into Switzerland’s expanding crypto-financial ecosystem.
The SBA supports the legislative initiative but is urging regulators to ensure the framework remains globally competitive and innovation-friendly. A central concern involves limiting stablecoin issuance to specialized payment institutions rather than allowing licensed banks to participate directly.
Swiss banks already operate under some of the most stringent supervisory and capital requirements in global finance. Industry leaders argue that preventing them from issuing stablecoins or tokenized deposits under existing banking licenses creates unnecessary barriers to innovation. Such restrictions, they warn, could place domestic institutions at a disadvantage as global competitors accelerate digital asset integration.
Technology-neutral rules seen as key to innovation
Regulatory coherence remains a core theme in the SBA’s response. The association is advocating for technology-neutral legislation that integrates blockchain-based instruments into the existing financial system rather than isolating them within new regulatory silos.
Alignment with international standards is also a priority. The European Union’s Markets in Crypto-Assets (MiCA) framework, for example, does not prohibit bank-issued stablecoins. Switzerland risks weakening its competitive edge if its regulatory model diverges too sharply from major financial jurisdictions.
Regulatory clarity could boost global competitiveness
Beyond innovation enablement, systemic safeguards remain central to the debate. The SBA is calling for robust customer protection measures, including strict custody rules governing client funds. From a financial stability standpoint, the association maintains that only banks should hold sight deposits with the Swiss National Bank, and only under tightly controlled conditions.
Authorities are also being urged to conduct a comprehensive impact assessment covering all stablecoin use cases, from retail payments to cross-border transfers and wholesale settlement.
Switzerland’s evolving approach reflects a broader global shift toward integrating stablecoins into regulated finance. With the right balance between innovation and oversight, the country is positioning itself to remain a leading hub for institutional crypto and digital asset issuance.
Stay informed,
Rodcas Consulting Group