EU Banking Regulator Affirms MiCA Framework Addresses Stablecoin Risks
The European Banking Authority (EBA) has responded to concerns from the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) regarding potential financial instability risks posed by stablecoins. The EBA asserts that the EU's Market in crypto Assets Regulation (MiCA) already includes safeguards to mitigate these risks.
ECB's push for stricter regulations, including a proposed ban on multi-issuance stablecoins, could significantly impact cross-border operations for issuers like Circle. While the ESRB's recommendations are not legally binding, they are expected to pressure EU authorities to either implement restrictions or justify alternative stability measures.
The EBA spokesperson highlighted that massive redemption requests remain a key concern, though the actual impact WOULD depend on a stablecoin's underlying structure and market position.
