Catenaa, Thursday, July 03, 2025- The European Commission has taken a softer position on foreign stablecoins, offering reassurances that risks related to multi-issuance and potential bank runs are highly unlikely. This contrasts with earlier warnings from the European Central Bank, sparking optimism among industry players.
The Commission told Cointelegraph that even in a rare run on jointly issued tokens, redemptions by foreign holders would mainly happen in jurisdictions like the U.S., where most tokens circulate and reserves are held. This stance marks a significant win for stablecoin issuers and advocates.
In April, the ECB warned that joint issuance with third countries could weaken the EU’s prudential regime, increase run risks, and undermine consumer protections under the Markets in Crypto-Assets Regulation (MiCA). It also raised concerns about regulatory accountability and market access by non-EU firms.
However, the Commission’s June analysis concluded that institutional and regulatory barriers, including MiCA’s registration requirements, have discouraged large foreign issuers from entering Europe. The Commission cited Tether’s refusal to comply due to reserve mandates as an example.
The Commission believes risks are manageable with existing policies, including requiring rebalancing mechanisms to align EU reserves with token holdings.
Industry leaders welcomed the news. Juan Ignacio Ibañez of the MiCA Crypto Alliance called the Commission’s approach “very positive” and “a relief,” emphasizing the importance of stablecoins’ cross-border usability and warning that strict jurisdictional silos would degrade user experience.
