The European Commission launched a consultation on May 20 on the MiCA regulatory framework and the multi-issuance model of stablecoins, with a report expected by June 2027. The European Central Bank and the European Systemic Risk Board, both led by Christine Lagarde, consider these arrangements a potential threat to financial stability, fearing a run on European reserves during a crisis. The ESRB recommended that arrangements linking a European issuer to a foreign issuer are not permitted under current rules, while the European Parliament voted to maintain multi-issuance with additional safeguards. The Commission is evaluating several protections, including a liquidity buffer dedicated to European withdrawals and more frequent reserve monitoring. Euro-denominated stablecoins represent approximately 674 million euros, far below dollar-pegged tokens.
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