[Chain News] On September 4, European Central Bank (ECB) President Christine Lagarde called on policymakers to fill the gaps in stablecoin regulation, particularly for those stablecoins issued outside the "robust" regulatory framework for crypto assets in the EU (MiCA).
In a preparatory speech for the ninth annual meeting of the European Systemic Risk Board on Wednesday, Lagarde stated that EU lawmakers should take appropriate measures regarding the issuance of stablecoins by MiCA-regulated entities in conjunction with non-EU entities; unless there is a "robust equivalent regulatory framework" in the jurisdiction of issuance, which includes allowing EU investors to "always redeem their held stablecoins at face value," and requiring issuers to provide full reserve backing for the stablecoins issued, such stablecoin issuers should not be allowed to operate in the EU.
Lagarde stated: "Once a run occurs, investors will naturally tend to redeem in the jurisdiction with the strongest safeguards, which is likely to be the EU, as MiCA also prohibits redemption fees. However, the reserves held by the EU may not be sufficient to meet such concentrated redemption demands."
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
11 Likes
Reward
11
10
Repost
Share
Comment
0/400
Hash_Bandit
· 09-04 10:09
old lagarde still stuck in the 2008 mindset smh
Reply0
BloodInStreets
· 09-04 00:56
One BTC supports two empty ends.
View OriginalReply0
PrivateKeyParanoia
· 09-04 00:52
Are you starting to meddle in other people's affairs again?
View OriginalReply0
DeFiDoctor
· 09-04 00:49
Take another precaution, stablecoins with inadequate liquidity management are exactly the high-risk patients of over-issuance.
European Central Bank President Lagarde calls for stronger regulation of non-EU stablecoins
[Chain News] On September 4, European Central Bank (ECB) President Christine Lagarde called on policymakers to fill the gaps in stablecoin regulation, particularly for those stablecoins issued outside the "robust" regulatory framework for crypto assets in the EU (MiCA).
In a preparatory speech for the ninth annual meeting of the European Systemic Risk Board on Wednesday, Lagarde stated that EU lawmakers should take appropriate measures regarding the issuance of stablecoins by MiCA-regulated entities in conjunction with non-EU entities; unless there is a "robust equivalent regulatory framework" in the jurisdiction of issuance, which includes allowing EU investors to "always redeem their held stablecoins at face value," and requiring issuers to provide full reserve backing for the stablecoins issued, such stablecoin issuers should not be allowed to operate in the EU.
Lagarde stated: "Once a run occurs, investors will naturally tend to redeem in the jurisdiction with the strongest safeguards, which is likely to be the EU, as MiCA also prohibits redemption fees. However, the reserves held by the EU may not be sufficient to meet such concentrated redemption demands."