EU regulators push for stronger oversight of digital assets
The European Central Bank (ECB), led by President Christine Lagarde, has stated that foreign issuers of stablecoins must comply with standards closely aligned to those applied within the EU. These include strict requirements for transparency, reserve backing, and consumer protection.
The ECB warned that without such safeguards, the growing use of non-EU stablecoins could pose a threat to the bloc’s financial stability, especially if adoption expands outside regulated frameworks.
“We must ensure that any stablecoin issuer, regardless of origin, follows clear principles of transparency and reliability. Otherwise, the European market could face new vulnerabilities,” Lagarde emphasized.
- In June 2025, the EU implemented its landmark MiCA (Markets in Crypto-Assets) regulation, establishing a unified legal framework for cryptoassets across the bloc.
- However, most of its rules currently apply only to EU-based issuers, leaving a regulatory gap for international stablecoin providers.
- The ECB is now urging the European Commission and national regulators to extend oversight mechanisms to foreign issuers to ensure a level playing field.
The ECB is stepping up pressure on global stablecoin issuers, pushing for consistent safeguards and transparency standards across all participants in Europe’s financial system.
