European Commission: Existing cryptocurrency rules already address stablecoin risks

The European Commission said on Friday that European cryptocurrency rules are sufficient to address stablecoin risks and did not see the need for major adjustments after the European Central Bank called for more safeguards. Europe already has landmark cryptocurrency-specific regulations, but Brussels lawmakers are under pressure from the European Central Bank to block the "multi-issuance" stablecoin model. The dispute centers on whether multinational stablecoin companies can treat tokens issued within the EU as fungible with tokens held outside the bloc. On Tuesday, six cryptocurrency industry associations, including Circle, wrote to the European Commission calling for guidance recognizing the multi-issuance model and clarifying how it operates under the Markets in Crypto Assets Directive (MiCA). A European Commission spokesman said MiCA provides a strong and proportionate framework for addressing stablecoin risks and is working to provide clarification as soon as possible. (Reuters)