EU Commission: "Stablecoin risks can be addressed under current regulatory framework"

Minseung Kang

Summary

The EU Commission said the current cryptocurrency regulatory framework can sufficiently address stablecoin risks.
The EU Commission said regulation under the MiCA bill is robust and that no further major institutional overhaul is necessary.
However, it said that, in response to industry requests, it is swiftly preparing detailed interpretative guidance.

The European Commission has stated that risks related to stablecoins within Europe can be adequately managed under the existing regulatory framework.

On the 10th (local time), according to virtual asset (cryptocurrency) specialist media BlockBeats, the EU Commission said, "The EU's current cryptocurrency regulatory framework is sufficient to mitigate stablecoin risks, and large-scale institutional reform is not necessary despite the European Central Bank (ECB)'s additional calls for supplements." However, it is reportedly preparing detailed interpretative guidance to avoid confusion in the application of the law.

Europe has already enacted and is implementing the comprehensive bill 'MiCA (Markets in Crypto-Assets),' which governs the overall cryptocurrency market. However, discussions over regulatory clarity have flared up again after the European Central Bank (ECB) stated that structures in which a single stablecoin is issued simultaneously in multiple jurisdictions should be restricted.

Earlier, six cryptocurrency industry groups, including Circle, sent a joint letter to the EU Commission requesting that it provide clear guidelines so that multi-jurisdictional issuance models can lawfully operate under the MiCA framework.

An EU Commission spokesperson said, "MiCA provides a strong and balanced framework to address stablecoin risks," and added that "related interpretations and guidance are being prepared swiftly to address industry concerns."