ECB’s Lagarde Demands Ironclad Safeguards For Foreign Stablecoins

European Central Bank President Christine Lagarde throws down regulatory gauntlet—calling for stringent controls on offshore stablecoin operators.

Cross-Border Protection Push

Lagarde's warning shots target dollar-pegged tokens and other foreign-issued stablecoins operating in EU markets without what she calls 'adequate oversight.' No specific operators named—but the message hits Tether and USDC loudest.

DeFi's Regulatory Reckoning

The ECB chief argues loose oversight risks financial contagion—pushing for mandatory licensing, reserve audits, and transaction caps. Her stance echoes growing global pressure to corral crypto’s wilder frontiers.

Traditional finance types nod along—nothing comforts bankers like watching regulators swarm their disruptive competition.