The European Commission said its current MiCA crypto framework already addresses the main risks tied to stablecoins, suggesting no major policy changes are needed even after the European Central Bank called for tighter safeguards.
The statement comes amid a dispute over “multi-issuance” — a structure that allows a stablecoin issuer to treat tokens created inside and outside the EU as interchangeable. In a letter to Commissioner Maria Luis Albuquerque, crypto associations representing firms like Circle urged Brussels to confirm the legality of this model under MiCA.
“We believe MiCA provides a robust and proportionate framework for addressing risks stemming from stablecoins,” a Commission spokesperson told Reuters, adding that clarification on implementation would arrive soon.
The ECB, led by Christine Lagarde, has warned that multi-issuance could threaten financial stability by triggering redemption runs within the EU. Stablecoin issuers counter that they hold sufficient reserves globally to meet demand.
Analysts at J.P. Morgan noted that 99% of stablecoins are pegged to the U.S. dollar and said the sector’s growth could reinforce the dollar’s dominance in digital finance.
