🔒 EU Risk Alert: Stablecoins Need More Guardrails, Warns Watchdog

[theSignalyst]

The EU’s financial risk board (ESRB) issued a warning that some stablecoins, especially those partially issued outside the EU, could pose systemic risks.

They’re pushing for urgent safeguards — consistent rules across jurisdictions, better backing, and stronger oversight.

[Nahid Hossen]

️ ESRB warning: The EU’s financial risk board says certain stablecoins — especially those issued both inside and outside the bloc — could pose systemic risks. Regulators may tighten oversight to limit exposure.

[Abdul Khan]

The ESRB cautions that multi-issuance stablecoins could threaten EU financial stability. Lawmakers are now under pressure to address risks from assets circulating beyond the bloc’s direct regulatory reach.