The ECB in the April 14, 2025 meeting with EU Commission (EC) allegedly feared that MICA regulation permissiveness to “multi- issuance” model, in which Europe-based stablecoin issuers pool their resources with issuers in third countries would allow U.S. users to impose redemption requests on European issuers, risking a “run” on their reserves and potential knock-on effect on exposed banks

Event date

Apr 14, 2025 - 12:00am

Quotes that support claims

The EU official suggested that the ECB’s paper was based on a fundamental misreading of the MiCA regulation, which, the official said, had been designed explicitly to resolve the issues mentioned by the ECB. The official added that it made “no economic sense” for U.S. users to impose redemption requests on European issuers, and that the idea of a traditional “run” on an asset backed one-to-one was “nonsense.”

The ECB argued that the regulation needs a serious rethink, warning it was too permissive toward the “multi-issuance” model, in which Europe-based stablecoin issuers pool their resources with issuers in third countries, according to the document.