The Commonwealth Secretariat has published a new model law to help countries regulate stablecoins - rapidly growing digital currencies now valued at hundreds of billions of dollars globally.
Stablecoins are digital assets linked to traditional currencies such as the US dollar. They are increasingly being used for payments, remittances and cross-border trade. As their use grows, governments are tasked with ensuring that these assets operate safely, transparently and within national financial systems.
The non-binding model law was presented at the Commonwealth Law Ministers Meeting in Fiji on 9 February 2026. In their outcome statement, law ministers endorsed the model law and encouraged continued collaboration in refining and implementing the model laws, as appropriate.
The model law provides guidance to help countries regulate the issuance, custody and oversight of stablecoins in line with international standards. It is designed to support customer protection, reduce financial crime risks and strengthen market stability, while enabling responsible innovation.
Commonwealth countries may use the model law as a reference point when drafting new legislation or updating existing laws, adapting its provisions to suit national circumstances.
Speaking about the model law, Dr Elizabeth Macharia, acting Head of the Commonwealth Secretariat’s Rule of Law Section, said:
"This model law is part of our effort to help governments keep up with the fast-growing world of digital finance. It builds on our earlier work on virtual asset service providers and gives countries practical guidance on how to regulate stablecoins.
"We hope it will help governments tackle illegal activity while setting clear rules that encourage innovation, build trust in financial markets and support long-term economic growth that benefits their citizens."
Work on the model law began following a request from Commonwealth law ministers in 2024 to consider trends in the digital assets space.
The Secretariat convened a working group of 30 industry experts, including lawyers, financial advisers and technologists. They contributed on a pro bono basis to develop the framework following a series of consultation with policymakers and experts.
