The European Commission maintains that MiCA's provisions are sufficient to handle stablecoin-related risks and is working to clarify rules on multi-jurisdiction issuance, despite ECB calls for stronger safeguards.
The European Commission confirmed that the Markets in Crypto-Assets (MiCA) regulation effectively addresses stablecoin risks, rejecting the need for major changes. The dispute revolves around whether multinational stablecoin issuers can treat EU-issued tokens as interchangeable with those from other regions. Six crypto trade associations, including Circle, have called for clarity on multi-jurisdiction issuance rules. The Commission is preparing to issue guidance to address these concerns, while the ECB and European Systemic Risk Board highlight risks in cross-border stablecoin issuance.