EU may implement standards for the operation of stablecoin issuers by the end of the year

The document developed by the banking regulator is being reviewed by the European Commission

11.09.2024 - 15:50

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What’s new? The European Banking Authority (EBA) plans to put in place standards for the operation of stablecoin issuers in the EU by the end of the year, an official told CoinDesk. Along with 14 other technical standards, they have been developed by the EBA in conjunction with the European Securities and Markets Authority (ESMA) and submitted to the European Commission, the bloc’s executive body.

CoinDesk’s material

What else is known? The Markets in Crypto-Assets (MiCA) regulation, which allows cryptocurrency companies to serve customers in the 27 EU countries under a single license, was passed last year. MiCA rules relating to stablecoin issuers began to take effect in June this year, while the rest of the law’s provisions will be implemented by December.

The European Commission will study the EBA’s proposed standards and may either adopt or amend them as a result. These standards for stablecoin issuers address areas such as authorization, stress tests, and methods for assessing the number and value of transactions.

Once the commission adopts the standards, they will head to the European Parliament and the European Council for review and, if approved, will be published in the official journal of the EU.

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Earlier, Jeremy Allaire, the head of USDC’s stablecoin issuer Jeremy Allaire, said that MiCA regulations governing stablecoin reserves carry a banking risk.

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