European Central Bank President Christine Lagarde warned at the European Systemic Risk Board conference that regulatory gaps in MiCA allow multi-issuance stablecoin schemes where EU entities face stricter requirements than non-EU partners. She highlighted liquidity shortfalls as a major vulnerability, noting that during crises investors would concentrate redemptions in EU jurisdictions, potentially draining reserves. Euro-denominated stablecoins currently represent just 0.15% of the $230 billion market, with USD-backed tokens accounting for 99%. Lagarde urged new legislation to require equivalence regimes for non-EU issuers and asset transfer safeguards, while also stressing the need to accelerate digital euro development to counter U.S. dominance after the GENIUS Act.