The position adopted by the Commissione Europea (EU) towards the regulation of stablecoins is distinguished by a decidedly softer approach compared to the recent concerns expressed by the Banca Centrale Europea (ECB).
The orientation of the Commission has generated optimism among industry operators, who see new prospects for growth and innovation in the digital ecosystem of the Union.
Stablecoin and the reaction of the European Union (EU)
The issue of regolamentazione stablecoin has received mixed responses among the institutions in Brussels.
On one hand, the European Central Bank stated in an April non-paper that the multi-issuance model between EU and non-EU stablecoin holders could significantly weaken the prudential regime for electronic token issuers on the continent.
According to the ECB, the main risk concerns the possibility of a bank run, with European issuers unable to meet redemption requests from both EU and foreign holders.
However, the Commissione Europea has taken a less alarmist stance. In response to concerns about financial security and regulatory compliance, the Commission stated that the risk of a bull run on the banks is “highly unlikely”.
According to the analyses presented, should such a scenario occur, reimbursements by foreign holders would primarily take place in markets like the United States, where most stablecoins circulate and the largest reserves are held.
In detail, the position of the BCE is based on several potential issues arising from the joint stablecoin issuance with third countries.
The regulatory body fears that these operations could:
Weaken prudential safeguards: Possible difficulties in implementing effective control over issuers’ reserves in the EU space.
Threaten financial stability: The possibility that foreign issuers claim false compliance with EU rules without real local supervision.
Bypassing MiCA regulations: Evading the standards set by the regulation on the crypto-assets market, allowing access to the European single market without meeting all the requirements.
According to the BCE, all this could lead to a loss of fundamental guarantees for consumers and reduce the control of European authorities over digital financial products circulating within the community borders.
The European Commission downplays stablecoin risks
In direct response to the warnings of the ECB, the European Commission published a detailed study in June titled “Stablecoins and digital euro: friends or foes of European monetary policy?”.
The document introduces an in-depth analysis of the effects of the joint issuance of stablecoins between the EU and third countries.
In the report, the Commission highlights the presence of solid institutional and regulatory obstacles that already today limit the spread of foreign stablecoins in the Eurozone.
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Under the magnifying glass of the European regulator are the rules introduced by MiCA, the European regulation on crypto-assets. This regulatory framework has discouraged many large foreign issuers from registering in the EU market.
The case of Tether, manager of the main stablecoin by market capitalization (USDt), is cited in particular, as it refused European registration partly due to the requirement to hold at least 60% of reserves with European banks.
According to the Commission, the presence of a rebalancing mechanism—i.e., balancing of reserves based on emissions in Europe—ensures that potential issues are easily manageable with the current regulations.
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The softer approach adopted by Brussels represents, according to local observers, a real turning point for the cryptocurrency sector and digital assets.
The MiCA Crypto Alliance, through Juan Ignacio Ibañez, expressed satisfaction with the decision not to force issuers like Circle to distinguish between USDC issued in the United States and the European Union.
In this way, the Commission promotes a vision in which tokens are treated as fungible on a global scale. That is, a single entity guarantees the convertibility and redemption of coins, regardless of the place of issuance.
This choice, according to Ibañez, protects a key feature of stablecoins: the cross-border usability made possible by the blockchain.
Imposing jurisdictional barriers would have risked fragmenting the market and worsening the experience of European users. Thus depriving the continent of one of the most significant innovative aspects of cryptocurrencies.
Stablecoin and European monetary policy: balances and perspectives
Despite the distances between BCE and Commissione Europea, a clear strategy emerges: maximize the advantages of technological integration without neglecting oversight and transparency.
Foreign issuers will continue to clash with regulatory barriers, but the Commission recognizes that, with the available tools, the risks remain moderate and manageable.
This balance favors the development of the stablecoin market in Europe. Thus keeping the door open to financial innovation and global exchanges, without loosening the necessary supervision on cryptographic resources.
The cautious yet open approach of Brussels could become a benchmark for other markets aiming to attract international investments in digital assets without exposing consumers to excessive risks.
Ultimately, the position of the European Commission reflects the desire to harmonize security and innovation in a rapidly evolving sector. Thus safeguarding both the European monetary stability and the Union’s ability to remain competitive on a global level.
With constant oversight on reserve mechanisms and a strengthening of anti-abuse regulations, the EU is preparing to face future challenges of stablecoin.
The next moves of the European authorities will be crucial in defining the role of these financial assets in the new digital monetary order.
