EU Watchdog Proposes Ban on Multi-Issuer Stablecoins, Targeting USDT and USDC
The European Systemic Risk Board (ESRB) has proposed a significant move in cryptocurrency regulation. It has recommended banning multi-issuer stablecoins, which could impact major players like Tether (USDT) and Circle (USDC) in the European Union.
The ESRB, a European Union financial watchdog, approved a non-binding recommendation targeting stablecoins issued jointly within the EU and other jurisdictions. This move aims to mitigate potential risks associated with these cryptocurrencies.
The European Supervisory Authorities (ESAs) echoed this sentiment, issuing a non-binding recommendation to restrict the issuance of multi-issuer stablecoins. If lawmakers approve these recommendations, it could pressure authorities to restrict the operations of companies such as Circle and Paxos, which issue stablecoins like USDC and BUSD respectively in the European countries.
The proposed ban on multi-issuer stablecoins, if approved, would significantly impact the cryptocurrency landscape in Europe. It remains to be seen how stablecoin issuers and other stakeholders will respond to these recommendations.
