The EU relaxes regulations on foreign stablecoins, ignoring concerns from the European Central Bank.

On June 26, news broke that the European Commission is about to release formal guidance allowing dollar-backed stablecoins such as USDC and USDT to circulate freely within the EU, enjoying the same treatment as European-registered stablecoins. This move will eliminate the key regulatory barriers that previously restricted dollar stablecoins from entering the European market.

Despite multiple warnings from the European Central Bank that unrestricted foreign stablecoins could pose a threat to financial stability, the European Commission insists on pushing for a policy shift. ECB President Christine Lagarde has urged for stronger regulation of stablecoin issuers to guard against capital flight and monetary sovereignty risks. However, the European Commission has not changed its stance and has decided to relax restrictions on foreign stablecoins.

According to the current EU regulation on the crypto asset market (MiCA), stablecoin issuers must keep a large portion of their reserves in EU banks and ensure a redemption right denominated in euros, while the proposed changes will allow global issuers to bypass this restriction. The EU's move aims to actively promote cryptocurrency innovation to enhance its competitiveness in the global crypto market.

The recent passage of the GENIUS Act by the U.S. Senate establishes a national framework for the regulation of stablecoins, which undoubtedly puts pressure on other jurisdictions to follow suit. In this context, the forthcoming guidelines from the European Commission, along with its active participation in the global cryptocurrency market competition, aim to ensure that its position in this emerging field is not weakened.

Although the European Central Bank has not publicly commented on the upcoming guidelines, internal opposition remains strong. It is reported that EU officials are seeking a compromise solution that would grant national regulatory authorities more discretion to better assess the risks of foreign stablecoins. This move not only promotes the development of the digital market but also ensures financial stability and safety, while balancing the different positions of all parties.

Once the new policy is promulgated and implemented, it may signal the important role of the US dollar stablecoin in Europe, while also consolidating the dominance of the US dollar in the EU digital asset market. The EU hopes to adjust this policy to ensure financial stability while promoting innovation and development in the digital asset sector, thereby enhancing its competitiveness in the global market.

#欧盟委员会 # stablecoin regulation #regulatory policy