Brussels set to disregard ECB warnings over stablecoin rules

Description

Brussels plans to permit foreign-issued stablecoins to be treated as equivalent to EU versions, disregarding ECB warnings of financial instability and reserve risks.

Authors

Philip Stafford

Publish date

June 25, 2025

Publisher

The Financial Times

Web archive URL

https://archive.is/Qadzr

Web URL

https://www.ft.com/content/97c78ba5-225a-439c-8d10-bc82c2d934d1

Referenced by

The European Commission, the EU’s executive arm, is planning to issue formal guidance proposing that stablecoins issued outside the bloc are treated as interchangeable with same-branded versions allowed only on EU markets, according to people briefed on its contents. The announcement was set for the coming days, said a person with knowledge of the situation.

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The commission instead proposed allowing national supervisors to make their own risk assessments and potentially ask for additional safeguards.

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The ECB’s criticisms were also motivated by a desire to create a central bank-issued digital currency, which would compete with and could potentially undercut stablecoins issued by private companies, the executive added.

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