ECB Raises Concerns Over Potential US Regulations Impacting The EU Economy
Catherine RichardsSummary:
ECB Raises Concerns Over Potential US Regulations Impacting the EU Economy，the European Central Bank (ECB) has expressed the need for amendments.
The European Central Bank (ECB) has expressed the need for amendments to the recently enacted MiCA regulation, highlighting concerns that US-origin regulations could lead to undesirable economic impacts within the 27-member bloc. The bank emphasized the importance of addressing these issues proactively to safeguard the EU’s economic stability.
US Regulations and Their Impact
The ECB pointed out that proposals currently under consideration in the US Congress, such as the “Transparency and Accountability for a Better Ledger Economy Act” and the “Guidance and Establishment of National Innovation for US Stablecoins Act,” may enhance the influence of dollar-backed stable digital assets. As a result, it is anticipated that US regulations could significantly expand the stablecoin market within three years, raising concerns about the dominance of the dollar in the stablecoin sector, which is unfavorable for the European Union.
Discussions Within the EU
The ECB' s request for modifications has led to disagreements with the European Commission. The Commission has underscored that the full impact of the US regulatory environment on EU financial stability has yet to be assessed. During relevant meetings, officials and diplomats from EU member states expressed caution regarding hasty amendments to the regulation.
“Currently, very few countries support the idea of hastily changing rules based solely on this context.”
Documents distributed during the meeting suggested a reevaluation of the MiCA regulation’s scope. The Commission noted that the number of globally authorized stable cryptocurrencies is limited and that the existing legal framework can effectively manage associated risks.
European Commission Official: “The risks stemming from global stablecoin assets are exaggerated and manageable under current regulations.”
Moreover, concerns arose regarding potential economic repercussions among countries that align with US regulations, which could foster uncertainties about the future of the European economy. This evolving scenario may lead to a reshaping of balances in international financial markets.
The ECB' s proposed changes to the MiCA regulation are being closely monitored by numerous EU members. It is believed that these developments could impact international financial policies and prompt new adjustments over time.
Source: CryptoSlate
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