On Friday, the European Central Bank (ECB) submitted a 42-page opinion on the draft European Union (EU) regulations for Markets in Crypto-Assets (MiCA).
Given the document length, there are numerous suggested changes. One is to give central banks veto power over stablecoins. The draft MiCA legislation already proposes that ‘asset referenced tokens’ might be refused authorization by a ‘competent authority’. But which authority depends on the nature of the token. Hence the ECB suggests that where such a token is like a payment scheme, the exclusive right to refuse authorization should sit with the ECB or the national central bank where the token is issued.
This is just another example of the tricky overlap issues that crypto-assets encounter worldwide, which this draft regulation is trying to address. The challenge is if it’s too detailed, then new assets will fall through the cracks. But that can also happen if it’s not sufficiently detailed.
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