ECB’s Lagarde Calls for Uniform Stablecoin Regulation Across EU and Non-EU Issuers

European Central Bank President Christine Lagarde has emphasized the need for consistent regulatory oversight of stablecoins, regardless of whether issuers are based inside or outside the European Union. Speaking at the ninth annual conference of the European Systemic Risk Board in Frankfurt, Lagarde warned that regulatory gaps could expose investors to risks and undermine financial stability.

Lagarde highlighted liquidity concerns and the necessity for robust safeguards as stablecoins gain traction in cross-border payments. Her remarks signal a shift from the ECB's earlier skepticism, reflecting a broader push to regulate private stablecoins while advancing the digital euro project.

"European legislation should ensure that such schemes cannot operate in the EU unless supported by robust equivalence regimes in other jurisdictions and safeguards relating to the transfer of assets between the EU and non-EU entities," Lagarde stated. The ECB's stance underscores growing institutional scrutiny of crypto assets as they become more integrated into global finance.