EU Dey Find Global Stablecoin Regulation Amid MiCAR Gaps

EU regulators dey try extend MiCAR stablecoin regulation to non-EU issuers. For ESRB conference, ECB President Christine Lagarde warn say legal gaps fit expose investors to liquidity risks when stablecoins dey promise quick redemption but back assets with risky investments. She talk say we need strong equivalence regimes to stop regulatory arbitrage and make sure cross-border asset transfers dey safe. Under MiCAR, stablecoin issuers gats hold 1:1 reserves, get authorization, and no be allowed to charge redemption fees. But multi-issuance schemes wey dey mix EU and non-EU entities dey escape full oversight now. To close these gaps, Lagarde dey call for global cooperation. Meanwhile, US GENIUS Act wey go start by 2027, go require stablecoins like USDC to keep one-to-one backing. This fit satisfy EU standards and help bring stablecoin regulation together. Traders suppose dey observe these developments because stricter rules fit affect issuance, liquidity, and cross-border redemptions.