ECB’s Lagarde Pushes to Make MiCA the Global Standard for Stablecoins
- Christine Lagarde has advocated for stricter rules on non-EU stablecoin issuers.
- Lagarde asked policymakers to compel foreign stablecoin issuers to meet EU standards.
- The ECB president cited vulnerabilities in the current ‘irregular’ system.
European Central Bank (ECB) President Christine Lagarde is making a major push to establish the EU’s MiCA framework as the global standard for stablecoins, calling for stricter oversight of all non-EU issuers.
Her argument is that without a level playing field, the current system is vulnerable to “regulatory arbitrage” and creates systemic risk for the European financial system.
A “Vulnerable” System and a Major Loophole
Speaking at the annual conference of the European Systemic Risk Board, Lagarde laid out the key vulnerabilities in the current global stablecoin market, suggesting both the EU and non-EU issuers face the same regulatory requirements.
Lagarde’s main concern is “multi-issuance schemes,” where a fungible stablecoin is jointly issued by both an EU entity (which must follow the strict MiCA rules) and a non-EU entity (which may face little to no regulation).
Related: Stablecoin Regulation Heats…
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ECB’s Lagarde Pushes to Make MiCA the Global Standard for Stablecoins
- Christine Lagarde has advocated for stricter rules on non-EU stablecoin issuers.
- Lagarde asked policymakers to compel foreign stablecoin issuers to meet EU standards.
- The ECB president cited vulnerabilities in the current ‘irregular’ system.
European Central Bank (ECB) President Christine Lagarde is making a major push to establish the EU’s MiCA framework as the global standard for stablecoins, calling for stricter oversight of all non-EU issuers.
Her argument is that without a level playing field, the current system is vulnerable to “regulatory arbitrage” and creates systemic risk for the European financial system.
A “Vulnerable” System and a Major Loophole
Speaking at the annual conference of the European Systemic Risk Board, Lagarde laid out the key vulnerabilities in the current global stablecoin market, suggesting both the EU and non-EU issuers face the same regulatory requirements.
Lagarde’s main concern is “multi-issuance schemes,” where a fungible stablecoin is jointly issued by both an EU entity (which must follow the strict MiCA rules) and a non-EU entity (which may face little to no regulation).
Related: Stablecoin Regulation Heats…
The post ECB’s Lagarde Pushes to Make MiCA the Global Standard for Stablecoins appeared first on Coin Edition.
Read More
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