The European Central Bank seeks changes in the European Union’s markets in Crypto Assets Legislation (MICA) only months after the regulation came into force because it relates to us support for Crypto could lead to financial damage in the 27-nation block, Politico reported Tuesday.
The bank requires a rewrite of Mica, whose stablecoin provisions came into force last June, and which had full effect at the end of last year, an attitude that brings it into conflict with the Europe Commission, reported Politico, with reference to a political paper. Neither the ECB nor the Commission responded to a Coindesk request for comment.
The central bank is concerned about US legislation currently working through Congress, such as stableecoin transparency and accountability for a better headbox economy (stable) and the guidance and establishment of the National Innovation for the US StableCecoins ACT (Genius) could see the influence of dollar-stacked stablecoins grow further. The stablecoin sector could rise 10 times to reach $ 2 trillion within three years of the law passing, standard chartered prognosis.
At a meeting on April 14, with top officials from EU governments to discuss US support for crypto, the ECB circulated a document that claimed Mica needed a serious thinking, Politico said, citing two diplomats and an EU official who was not identified. It was not a popular position.
“Not so many [countries] supported the idea that we should now jump the gun and start making quick changes in [the rules] Based on this alone, ”said one of the diplomats.
The Commission claimed that it was still “premature” to judge the effect the US crypto -environment would have on EU economic stability, and only a global stablecoin has been approved according to the new rules. Circle, issuer of USDC, the second largest stableecoin, snagged the first stablecoin license under Mica last July.
“The risks arising from such global stableecoins appear to be exaggerated and can be handled under the existing legal framework,” the Commission said in a document distributed at the meeting.
Read more: The EU’s restrictive stableecoin rules take effect soon and issuers are running out of time
