In a speech at the GFTN Forum Japan, Financial Stability Board Deputy Secretary General Martin Moloney argued that innovations in areas such as artificial intelligence, tokenisation and crypto-assets are accelerating the transmission of risk, information and trust across the financial system, requiring regulators to become more agile even if core vulnerabilities remain familiar. He reiterated the FSB’s principles of applying similar regulatory outcomes where underlying economic activities and risks are similar, and of technology neutrality, while noting practical difficulties in judging when risks are truly comparable and in balancing financial stability with consumer protection. Moloney cited potential liquidity mismatches in tokenised real estate, leverage and risk-taking in multi-function crypto-asset intermediaries, and operational risks such as smart-contract failures, alongside AI-driven trading dynamics that can amplify herding and volatility. He outlined four priorities for authorities: rapidly bring new entrants within the regulatory perimeter, invest in supervisory capability and resources including RegTech and SupTech, reduce legal uncertainty that can delay effective obligations as network effects drive scale, and prepare for crises and runs that can unfold in hours or days as digital channels and social media accelerate withdrawals and contagion. He also warned that slow responses can contribute to cross-border fragmentation as activities migrate to avoid regulatory approvals.

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