EU relaxes foreign stablecoin regulations, ignoring ECB concerns
On June 26, the European Commission is about to issue formal guidance to allow dollar-backed stablecoins such as USDC and USDT to circulate freely within the EU and enjoy the same treatment as European-registered stablecoins. This move will remove key regulatory barriers that previously restricted the entry of dollar stablecoins into the European market.
Despite the ECB's repeated warnings that unrestricted foreign stablecoins could threaten financial stability, the European Commission has insisted on promoting policy changes. ECB President Christine Lagarde has urged stronger regulation of stablecoin issuers to prevent capital flight and monetary sovereignty risks. However, the European Commission has not changed its position and still decided to relax restrictions on foreign stablecoins.
According to the current EU Crypto Asset Market (MiCA) regulations, stablecoin issuers must keep most of their reserves in EU banks and ensure redemption rights denominated in euros, and the proposed changes will allow global issuers to bypass this restriction. The EU's move is aimed at actively promoting cryptocurrency innovation to enhance its competitiveness in the global crypto market.
The GENIUS Act, recently passed by the U.S. Senate, establishes a national framework for stablecoin regulation, which undoubtedly puts pressure on other jurisdictions to follow suit. Against this backdrop, the European Commission is about to issue guidelines and actively participate in the competition in the global cryptocurrency market to ensure that its position in this emerging field is not weakened.
Although the European Central Bank has not publicly stated its position on the upcoming guidelines, internal opposition remains strong. It is reported that EU officials are seeking a compromise solution to give national regulators more discretion so that they can better assess the risks of foreign stablecoins. This move not only promotes the development of the digital market, but also ensures financial stability and security, while balancing the different positions of all parties.
Once the new policy is promulgated and implemented, it may mark the important role of US dollar stablecoins in Europe and consolidate the dominant position of the US dollar in the EU digital asset market. The EU hopes to promote innovation and development in the field of digital assets while ensuring financial stability through this policy adjustment to enhance its competitiveness in the global market.
