European Commission set to announce stablecoin rules despite ECB warnings, potential bank destabilization

From Yahoo Finance: 2025-06-25 07:31:00

The European Commission is set to announce new rules for stablecoins despite ECB warnings of potential bank destabilization. The EU may treat stablecoins issued outside the bloc as interchangeable with EU versions. A digital euro proposal from Brussels has stalled since June 2023, with the ECB viewing it as crucial for financial autonomy in response to the U.S. promotion of stablecoins. ECB President Christine Lagarde emphasized the risks of privately issued stablecoins to monetary policy and financial stability. The Commission spokesperson downplayed the likelihood of a run on stablecoins, suggesting foreign holders would redeem in the U.S. if necessary.

Read more: Brussels set to disregard ECB warnings over stablecoin rules, FT reports