EU Parliament Considers New Crypto Policy: Multi-Issuer Stablecoins in Crosshairs
The European Parliament is considering a new policy that could significantly impact cryptocurrency companies like Circle and Paxos. This initiative aligns with recent calls by European Central Bank President Christine Lagarde for stricter regulation of cryptocurrencies.
The proposal specifically targets multi-issuer stablecoins, which are cryptocurrencies pegged to a stable asset like the US dollar. These stablecoins, issued jointly within the EU and other jurisdictions, could face restrictions if the policy is approved.
The European Systemic Risk Board (ESRB) has recommended banning such stablecoins in the EU. If implemented, this could pressure authorities to limit the operations of companies involved in their issuance. Key European authorities like the French AMF, Austrian FMA, and Italian CONSOB, supported by the ESMA, would oversee and control the implementation of the recommendation.
The proposed policy, if approved by the European Parliament, could reshape the cryptocurrency landscape in Europa. It specifically targets multi-issuer stablecoins, potentially impacting companies like Circle and Paxos. European authorities stand ready to enforce the new regulations, should they come into effect.
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