On October 10th, the European Commission confirmed that current cryptocurrency regulations are sufficient for managing risks associated with stablecoins. They believe no significant adjustments are necessary despite concerns raised by the European Central Bank.
Pressure from the European Central Bank emphasizes the need to address the multi-location stablecoin model, questioning the fungibility of EU-issued tokens with those outside the bloc. Industry associations have advocated for guidance on the multi-issuance model under the MiCA regulations.
The European Systemic Risk Board outlined inherent risks in the multi-issuance structure. Meanwhile, stablecoin issuers maintain they have adequate reserves for covering redemptions, aiming to reassure stakeholders amidst ongoing regulatory scrutiny.
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