Does Europe want to block American stablecoins? 3 questions to understand everything
Since the Dawn of Time, Europe and the United States, they have played a musical chair in regulation. The crypto is no exception to the rule and the old continent, with its taste for the rules, could attack a large piece of ecosystem: multi-emission stablecoins. It is a small barbaric name that the European CERT Council provides stablecins that are issued both in the Union and other jurisdictions such as the United States. We are inviting.
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- Europe plans to ban multi-emission stablecoins, perceived as a systemic threat by the European Council for System Risk.
- This ban could affect giants such as USDC Circle, which would force a great reorganization to remain in line in the EU.
Why does Europe want to disable these stablecoins?
According to sources reported by Bloomberg, CERS, European goalkeeper of financial stability, issued a recommendation that is cold in the back of the crypto of the actors. The organization is concerned that these stablecoins represent a systemic risk. Obviously, if one of the foreign issuers had to go bankrupt or meet, it could have a cascading consequences of the European financial system.
CERS is not alone in his struggle. PUSH European Central Bank (ECB)As a big excessive nurse has already expressed her reservations several times, as we explain in this article. In these stablecoins they see the threat to the euro sovereignty, especially if their reserves are mainly in dollars invested in American assets. It is also a way to “create a room” for the future EuroMNBC (Central Bank of Digital Mint), which ECB has in its boxes.
What stablecoins are affected by this measure?
If the prohibition is used directly would you target American Mastodons of the Sector. We obviously think RingtransmitterUSDCThe second largest stable in the world. We could also quote PaxostransmitterUSDPAnother main player who works in the United States and Europe.
These companies would be forced to check their copy. They could be forced to create independent subsidiaries for the EU or make it easier to limit access to their stablecoins for the European residents. It is a cornea dilemma: follow European regulation with the risk of fragmenting their global ecosystem or withdrawal from a very promising market.
What does it mean for the European crypto market?
For the market, the consequences could be significant, although of course it remains conditional. L ‘USDC is the pillar of the ecosystemMillions of investors used to protect against the volatility of cryptos. If you want to see that it will disappear from the European landscape, it would create emptiness and isolate the European market. Of course there are alternatives such as“USDT de Tether already excluded from the EUBut the competition would be reduced and the credibility of stablecoins could be undermined by this regulatory measure.
This offensive is in accordance with the regulations Mica (Markets in crypto -stets) received in 2024, which already very strictly oversee stablecoins. However, this new CERS recommendation goes further and creates a new layer of complexity. It remains to find out whether Europe is likely to slow down its own digital assets development by pulling out the warning against the most established players on the market.
(Tagstranslate) Europe