EU Watchdog Pushes for Ban on Multi-Issuance Stablecoins

[chainsniff]

A European Union crisis-response watchdog, the European Systemic Risk Board (ESRB), has reportedly recommended banning certain “multi-issuance” stablecoins — those issued jointly inside and outside the EU.

Bloomberg reported the non-binding recommendation could pressure regulators to curb activity from issuers such as Circle and Paxos. The move follows ECB President Christine Lagarde’s recent call for tighter crypto oversight and warnings from Italy’s central bank that such stablecoins pose financial stability risks.

[Abdul Khan]

The ESRB’s push to ban “multi-issuance” stablecoins could hit issuers like Circle and Paxos.

[Rimon Khan]

With Lagarde and Italy’s central bank warning of risks, EU pressure on stablecoins is clearly growing.