Overview

• The European Systemic Risk Board said third‑country multi‑issuer schemes have built‑in vulnerabilities and called for an urgent policy response.
• A non‑binding ESRB recommendation issued last week backs prohibiting multi‑issuance models, increasing pressure on EU lawmakers to tighten MiCA or set strong equivalence rules.
• ECB President Christine Lagarde has compared the risks to past cross‑border banking crises and wants foreign issuers held to the same standards as EU entities.
• Potential restrictions would directly affect U.S. firms such as Circle and Paxos, which may need to restructure their European operations if the EU adopts tougher rules.
• Policy momentum also includes a nine‑bank plan for a euro stablecoin in 2026 and ongoing work toward a digital euro targeted for 2029, with officials citing dollar stablecoins’ 99% share of a $230 billion market versus 0.15% for euro tokens.