The European Union is preparing to allow the influx of stablecoins from outside its borders, despite opposition from its central bank. A report indicates that the European Commission will soon issue guidance recognizing foreign stablecoins as equivalent to their European counterparts. This shift is seen as a significant win for U.S. dollar-backed stablecoins, according to Moody's. The European Central Bank, led by Christine Lagarde, has previously sought to limit the influence of foreign stablecoins in Europe. However, the recent passage of the GENIUS Act in the U.S. Senate, which aims to regulate stablecoin issuance and trading, is pressuring the EU to adapt its stance. Moody's analyst Cristiano Ventricelli noted that this change could disrupt the existing dynamics of the Euro stablecoin market, which has relied on restrictions against USD stablecoins. If the EU modifies its regulations, it may signal a desire to keep pace with global developments in digital asset regulation, as other regions advance their own frameworks. Read more AI-generated news on: https://app.chaingpt.org/news