The European Union appears ready to loosen restrictions on U.S.-issued stablecoins such as USDT and USDC, according to a Financial Times report dated June 25.
The European Commission plans to issue new guidance that would allow foreign stablecoins to operate under the same terms as their EU-registered counterparts.
This regulatory shift could open the door for dollar-backed tokens to circulate freely across European financial systems. Such a change removes a key barrier that has held back stablecoin adoption in the region.
ECB Pushes Back Against Liberalization Effort
Despite the Commission’s plans, the European Central Bank remains skeptical. Christine Lagarde, ECB President, has repeatedly called for tighter controls on non-European stablecoins. She warns of possible risks, including capital outflows and weakened monetary control.
Lagarde believes easy access to foreign stablecoins could undermine the euro’s stability. She has urged lawmakers to limit the presence of non-EU tokens in domestic markets.
MiCA Rules May Soften Soon
Under current Markets in Crypto-Assets (MiCA) laws, stablecoin issuers must store reserves in EU banks and support euro-denominated redemptions. The expected update could soften these requirements, offering a more open path for U.S. dollar stablecoins.
If approved, the change would mark a major policy reversal. It would prioritize market flexibility and payment innovation over concerns about centralized monetary control.
While the Commission seems eager to modernize crypto regulation, the ECB sees a direct threat to the euro’s dominance. The coming months could spark an intense policy debate across Europe’s financial and political circles.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/eu-may-approve-us-stablecoins-despite-ecb-concerns/