The report, citing two diplomats and one EU official, said that the existing MiCA framework is robust enough to manage stablecoin risks despite upcoming US policies like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Acts aimed at expanding America’s crypto footprint.“The Commission was quite clear that they had different views on this topic,” and “not very many (countries) supported the idea that we should now jump the gun and start making quick changes in (the rules) based on this alone,” one of the diplomats reportedly told POLITICO.
The ECB warns that European issuers could face redemption pressures from EU and foreign holders without stricter limits, potentially sparking a financial “run” and harming exposed institutions.“The worry is warranted,” Mikko Ohtamaa, co-founder and CEO at Trading Strategy, said in a post on X.“However, the EU had the first mover advantage with the regulation and they screwed it up.”Ohtamaa said no EU stablecoin is globally competitive due to MiCA’s restrictive rules, which are influenced by bank and legacy finance lobbying.
Source: Mikko OhtamaaRelated: US regulator,s FDIC and CFTC, ease crypto restrictions for banks, derivativesTether Remains a Major Critic of MiCATether, the issuer of the world’s largest stablecoin, USDT, has long been a major critic of the EU’s MiCA regulation.
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Author / Journalist: Cointelegraph by Bryan O'Shea
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