The Bank for International Settlements (BIS) and the IOSCO group of securities regulators published proposals on Wednesday on how the current rules for clearinghouses and payments services should also be applied to “systemically important” stablecoins.

These proposals are currently put out for public consultation before they can be finalized early next year.

With nearly a $70 billion market cap, USDT is currently leading the stablecoin market with its share at 57.2%, followed by the rapidly growing USDC, which accounts for 25.4% of market share with its market cap at $32.8 billion.

According to the report, regulators don’t intend to create additional standards for stablecoin instead build on the principles developed for critical financial market infrastructure in 2012.

As per the rules, a stablecoin operator must set up a legal entity. These rules will also need to be followed by countries that allow stablecoins to operate.

The principles further include clear disclosure of management structure and arrangements with affiliates.

The author of the report said stablecoins should have “little or no credit or liquidity risk.” He further advised the stablecoin regulatory framework to consider whether the holder is making a legal claim against the issuer or underlying asset.

“This report marks significant progress in understanding the implications of stablecoin arrangements for the financial system and providing clear and practical guidance on the standards they need to meet to maintain its integrity.”

Discussed on the proposed framework will last for eight weeks.

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