The European Commission is planning to issue new guidance that would allow foreign stablecoins to operate on equal terms with local tokens.
New Rules for Foreign Stablecoins
This regulatory shift could open the door for dollar-backed tokens to circulate freely across European financial systems. Such a change removes a key barrier that has held back stablecoin adoption in the region.
European Central Bank Skepticism
Despite the Commission’s plans, the European Central Bank remains skeptical. ECB President Christine Lagarde has repeatedly called for tighter controls on non-European stablecoins. She warns of possible risks, including capital outflows and weakened monetary control.
Expected Changes in MiCA Rules
Under current Markets in Crypto-Assets (MiCA) laws, stablecoin issuers must store reserves in EU banks and support euro-denominated redemptions. The expected update could soften these requirements, offering a more open path for U.S. dollar stablecoins.
The coming months could spark an intense policy debate across Europe’s financial and political circles regarding stablecoin regulation under pressure from both the Commission and the ECB.
