The European Central Bank (ECB) and the European Commission have a public dispute on the regulation of Mica and Stablecoin. The ECB believes that the restrictions are not severe enough, fearing that American companies dominating the market.
The Commission challenged the fears of the ECB, alleging that it develops fears linked to the stable reserve to promote a controversial program of the digital euro. There are already signs of European non-record for web3, and more restrictions would probably not help.
The ECB thinks that the mica is too forgiving
Mica entered into force only four months ago, but the ECB already has serious seconds. According to a recent report, he is concerned about the relative competitiveness of the stablescoins USD, which can take over the European market.
As a commentator, Mikko Ohtamaa, says it, he has good reasons to worry about the future:
“The EU had the first advantage of a mover with the regulations and they have messed up. No stablecoin of the EU is competitive internationally because the cases inherited from the activity that has been cooked in mica by lobbying efforts of banks and other inherited financial institutions,” he said via social media.
Since the EU addressed the subject of Stablecoin regulations for the first time, it has deeply impactd the region market. After Mica entered into force, Tether left the European market.
More recently, Ethena Labs also withdrew from Europe after failing to obtain the approval of the mica. These companies have not had such problems in the United States.
In an interesting turn, the ECB’s concern is not that the mica is too hard, thus preventing innovation. As Politico Affirmed, it fears rather that existing regulations are not strong enough.
Instead, he acknowledged that President Trump’s declared objective of using stablecoins to promote the domination of the dollar and fears them that American assets can flood European markets. He wants to fight back.
It is at the heart of the controversy between these EU institutions. The European Commission reacted hostility to the Mica changes proposed by the ECB.
Apparently, the Commission said that some of its specific concerns were “nonsense” and suggested that it only continued to put pressure for the controversial digital euro.
In other words, it seems that most EU institutions are satisfied with the existing stable regulations. Furthermore, if the ECB obtains its proposed mica reforms, would it even matter?
Cryptographic markets reacted with a shocking ambivalence to its recent rate drops. Europe is likely to be delayed in the global economy of the web3, and other restrictions are not likely to help.
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