EU Regulators Call for Tougher Stablecoin Rules Amid Significant Risks
The European Banking Authority (EBA) and the European System of Central Banks (ESCB) have called for tougher rules around stablecoins issued across multiple jurisdictions, citing 'very significant risks' to the financial system.
Blockchain businesses are urging EU lawmakers to tread carefully when reviewing the union's crypto laws in response to these calls. The EBA and ESCB recommendations aim to address concerns about third-country multi-issuance schemes, which allow stablecoins to be issued across several jurisdictions.
The European Systemic Risk Board (ESRB) previously recommended banning such assets to protect the financial system, a move that was backed by the ESCB. The EBA is now encouraging the commission to address these risks through stricter rules.