Overview

• Formal guidance due in the next few days will set rules for non-EU stablecoins to enter European markets under the same branding requirements as bloc-issued tokens.
• ECB President Christine Lagarde has warned that privately issued stablecoins could lure deposits from banks and amplify risks during market stress.
• Brussels insists that well-governed, fully collateralized stablecoins are unlikely to trigger redemption runs affecting European banks.
• Moody’s analyst Cristiano Ventricelli says the expected US GENIUS Act passage has pressured the EU into aligning its stablecoin framework with American standards.
• By easing restrictions on dollar-backed tokens, the EU aims to avoid becoming a “flyover zone” in the global digital assets landscape.