USDT and USDC Under Scrutiny: ECB’s Lagarde Warns of Stablecoin Threat to Monetary Sovereignty

In a recent address, ECB President Christine Lagarde identified stablecoins like Tether (USDT) and Circle (USDC) as significant threats to state-controlled monetary systems. With the stablecoin market capitalization surpassing $160 billion, Lagarde's comments highlight growing institutional concerns over the rise of private digital currencies operating outside central bank oversight. This development marks a new regulatory battleground for the ECB as it seeks to maintain control over monetary sovereignty in an increasingly digital financial landscape.

ECB's Lagarde Sounds Alarm on Stablecoins as Threat to Monetary Sovereignty

Christine Lagarde has positioned stablecoins as the ECB's newest regulatory battleground. The central bank president frames private digital currencies like Tether (USDT) and Circle (USDC) as existential challenges to state-controlled money systems. Her rhetoric echoes growing institutional anxiety - stablecoin market capitalization now exceeds $160 billion, creating parallel payment rails beyond central bank oversight.

The confrontation centers on monetary policy erosion. Stablecoins' dollar-pegged mechanisms effectively import Federal Reserve policy into Eurozone transactions, bypassing ECB instruments. Lagarde's public goods argument reveals deeper fears: when private entities issue currency, they appropriate what nation-states consider a fundamental sovereign privilege.

Regulatory skirmishes are intensifying globally. While the US GENIUS Act establishes guardrails, EU legislators remain divided between stifling innovation and protecting monetary control. This tension will define crypto's next institutional phase - whether decentralized finance coexists with traditional systems or forces a tectonic power shift.

WazirX Users Challenge Asset Freeze in Singapore Court

WazirX users are escalating their legal battle in Singapore's High Court, demanding the release of frozen crypto assets held by Zettai Pte Ltd, the exchange's Singapore entity. The dispute centers on the classification of user holdings—unhacked coins (Category A), fiat balances (Category B), and hacked ERC-20 tokens (Category C)—with claimants arguing Zettai improperly commingled assets under Singaporean restructuring laws.

Romy Johnson's affidavit alleges Zettai overstepped by treating user-owned crypto as corporate debt. The case could set a precedent for custody rights in crypto exchanges, particularly for Bitcoin (BTC), XRP, TRX, and Binance Coin (BNB) holders. A Twitter thread by @TOOFAANARMY dissecting the 40-page filing has amplified scrutiny of WazirX's asset management practices.

Bitcoin.com Casino Launches Metaverse Gaming Platform for Crypto Gamblers

Bitcoin.com casino has unveiled a metaverse gaming platform designed for the Web3 era, combining blockchain transparency with instant deposits and exclusive token perks. The platform, launched in May 2025, emphasizes user autonomy through a wide selection of games and 24/7 customer support.

Transactions are streamlined with support for multiple cryptocurrencies including BTC, ETH, LTC, TRX, XRP, ADA, and stablecoins like USDT and USDC. Fiat options include credit cards and SEPA transfers. The casino restricts access in high-risk jurisdictions such as North Korea, Russia, and China.