The European Central Bank (ECB) has made an alarm on the potential repercussions of aggressive support in the United States for the cryptographic industry, warning that an increase in sustained stable of a dollar could destabilize the European financial system.
According to a political document seen by Politico, the ECB has requested a revision of the markets in the regulatory framework of the markets of the crypto-besters Regulation (MICA) for cryptocurrencies a few months after its entry into force.
The concern is that the American reforms supported by President Donald Trump could flood European markets with stablescoins lengled in dollars.
The ECB fears that this will trigger a European capital flight to American assets, undermining the financial sovereignty of the EU and exhibiting banks with liquidity risks.
The ECB and the European Commission compete on the rules of the mica
While the ECB calls for stricter controls, the European Commission rejected warnings as exaggerated, according to the report.
The report, citing two diplomats and an EU official, said that the existing mica framework is robust enough to manage the risks of stablecoin despite potential American policies such as the transparency and responsibility of the stablescoin for a better economy of large book (stable) and the purchase and establishment of national innovation for stablescoins American (Genius), two invoices aimed at extending the crypto Foot-print in America.
“The commission was quite clear that they had different opinions on this subject”, and “few (countries) supported the idea that we should now skip the weapon and start bringing quickly (the rules) according to this alone,” said one of the diplomats to Politico.
The Stablecoin sector now commands an assessment of $ 234 billion, according to CoinmarketCap data.
The ECB has warned that European issuers could face EU buyout pressures and foreign without stricter limits, potentially arousing a financial “race” and harm the institutions.
“The concern is justified,” said Mikko Ohtamaa, co-founder and CEO of Trading Strategy, in an article on X. “However, the EU had the first advantage of mover with the regulations and they messed up.”
Ohtamaa said that no stable EU was competitive on a global scale due to the restrictive mica rules, which are influenced by banking and inheritance lobbying.
In relation: American regulator, SFIC S and CFTC, to use cryptography restrictions for banks, derivatives
The attachment remains a major critic of mica
TETHER, the transmitter of the world’s largestcoin in the world, USDT (USDT), has long criticized the EU mica regulations.
Last year, Tether CEO, Paolo Ardoino, argued that the requirements of Mica, in particular the mandate of stablecoin issuers, hold at least 60% of reserves in EU bank accounts, could introduce systemic risks both to stablecoins and the wider banking system.
Due to non-compliance with Mica, the USDT has been faced with fractures from the main European exchanges, including Coinbase, Crypto.com and Kraken.
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