Politico reported that the European Commission and European Central Bank (ECB) have clashed over stablecoins. The political outlet described the ECB’s reaction to the Trump administration embracing the global usage of US stablecoins as ‘alarmist’. And stated that the ECB was making an ‘unwelcome intrusion’ into the Commission’s lawmaking role.
The MiCA regulations for crypto-assets fully came into force in January. A clause in the regulation requires a report from the Commission on whether there need to be amendments to address issues such as DeFi. Peter Kerstens, the MiCAR architect who is writing the report, believes there’s no need for MiCAR v2.
Meanwhile, we’ve reported multiple times that we thought the ECB was overstating the threat of US stablecoins, because there are protections within the current version of MiCAR. We assumed the ECB’s key motivation was to encourage the passage of separate legislation to support its digital euro CBDC project.
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