Overview
- The ECB and ESRB warned that interchangeable tokens issued inside and outside the bloc could threaten financial stability and called for a ban on the model.
- The EBA said the severity of stablecoin risks depends on each issuer’s business model and scale under the MiCA framework.
- Under MiCA, national supervisors oversee licensed firms, while the EBA will directly supervise stablecoins designated as significant.
- People familiar with two national regulators’ positions said they share the stability concerns, with one fearing U.S. action could block reserve transfers needed for EU redemptions.
- Circle’s USDC, described as the largest EU‑regulated multi‑issuance token, has about $75 billion in circulation, while the European Commission has signalled no need for major MiCA changes.