MiCA Framework Clarifies Stablecoin Interchangeability Rules in EU

The European Union has provided critical guidance on the interchangeability of stablecoins under its Markets in Crypto-Assets (MiCA) framework. The clarification addresses whether identical stablecoins issued by EU-licensed and non-EU arms of the same company can be treated as fungible. This development comes as global regulators intensify scrutiny of the $150 billion stablecoin market.

France's banking supervisor prompted the European Commission's action in April 2024, seeking clarity on cross-jurisdictional token fungibility. MiCA requires e-money token issuers to obtain EU supervisory approval and maintain most reserves in EU-based banks—safeguards designed to ensure redemption capability while preserving financial stability.

European Central Bank President Christine Lagarde has voiced concerns that stablecoins could undermine monetary sovereignty, urging accelerated progress on digital euro legislation. The ECB's warnings highlight growing institutional tensions as crypto assets increasingly intersect with traditional finance.