The Commission is preparing to present a new guide to regulating the Stablcoins market, according to a Financial Times report informed of its content.
According to the informants, the initiative created friction with the European Central Bank (ECB). Despite financial institutions’ warnings about the risks these assets may represent for financial stability, Brussels appears to be determined to move forward.
These are expected to be planned by the European Union agency. I propose that stubcoins released outside the eurozone can be considered exchangeable for approved comparable versions within the blockif they correspond to the same broadcast or come from the same operator.
ECB President Christine Lagarde warned in front of the European Parliament Stubcoins pinned to the US dollar represent risks to the euro’s monetary policy and financial stability global. He also emphasized the importance of establishing robust standards, particularly when they operate at a cross-sectional level, to avoid strengthening their acquisition of US currency.
The ECB shows that holders of stupid scenarios issued outside the European Union can attempt to redeem assets within the group’s financial system. This will put pressure on the reserves and, ultimately, the blockbanks..
According to regulations in effect in the European Union, stubcoin issuers within the territory must maintain a large portion of European bank reservations and allow users to redeem the token directly.
The European Central Bank raised it to reduce risk The need for other countries to grant legal guarantees that allow effective transfer to the European Union in times of crisis. The measure seeks to prevent support assets from falling out of control of European supervisors before they are implemented on foreign stubcoins.
However, this month’s closing door meeting confirmed that there are no bilateral or multilateral agreements between the European Union and other jurisdictions that recognize its regulations as comparable or promote the implementation of its guarantees.
The European Union is pushing for stablecoins regulations, but important legislative movements are also registered in the US. As reported by Cryptootics, The Senate has approved the Genius Act with widespread bipartisan support.
In addition to being subject to regular audits to ensure transparency and safety, the Genius Act proposes that stubcoin emitters require that they maintain full support in US dollars or equivalent liquid assets.
Senators Bill Hagerty and Tim Scott, the main drivers of the law, highlight that. The initiative seeks to strengthen US leadership in the digital financial sector and strengthen the role of the dollar as a global reserve currency.
According to Hagerty, the project not only encourages the massive adoption of stubcoin in the traditional economy, but also allows it to position its releasers as some of the greatest holders of American treasure bonds by 2030.