#StablecoinNews #stablecoinpopularity
ECB and European Commission Clash Over Crypto Rules Amid U.S. Stablecoin Growth
The European Central Bank (ECB) and the European Commission are at odds over the adequacy of the EU's new crypto regulation, MiCA, in light of growing U.S. support for stablecoins under President Trump. The ECB warns that a surge in dollar-backed stablecoins could destabilize Europe’s economy by shifting capital toward the U.S., calling MiCA too weak to counter the threat.
The ECB is especially concerned about the “multi-issuance” model and wants urgent revisions to MiCA. Standard Chartered projects U.S. stablecoins could reach $2 trillion by 2028, intensifying ECB fears.
In contrast, the European Commission defends MiCA, arguing it already provides strong safeguards, including ECB powers to block harmful issuers. It says it’s too early to judge the impact of U.S. policy changes.
Meanwhile, ECB Chief Economist Philip Lane underscores the need for a digital euro to protect Europe’s monetary sovereignty and counter U.S. payment dominance.