The European Commission is preparing to issue guidance clarifying that stablecoins issued by European Union-licensed firms can be treated on par with those issued by affiliated entities outside the bloc, according to a source familiar with the matter.
The clarification, expected in the near future, aims to provide regulatory certainty under the EU’s Markets in Crypto-Assets (MiCA) framework. The source, who was not authorized to speak publicly, did not specify when the guidance would be formally released.
Cross-Border Compliance Under MiCA
MiCA, adopted in 2023, sets out a regulatory framework for crypto assets within the EU, including specific requirements for stablecoin issuers. These tokens, referred to as e-money tokens (EMTs) under the legislation, must be backed by fiat currencies and receive regulatory approval to operate in the EU.
The expected guidance is likely to ease compliance concerns for companies with global operations, particularly those issuing stablecoins through both EU and non-EU entities. Industry participants have sought clarification on whether coins issued by non-EU arms could be used interchangeably with those issued under EU oversight. The European Commission has not officially commented on the timing or content of the guidance.
ECB Flags Risks Amid Digital Euro Push
The move comes amid heightened regulatory scrutiny over stablecoins, which are designed to maintain a stable value by pegging to traditional currencies such as the U.S. dollar or euro. European Central Bank President Christine Lagarde warned earlier this week that stablecoins pose risks to monetary policy and financial stability.
Speaking to EU lawmakers on Monday, Lagarde urged the swift introduction of legislation supporting the launch of a digital euro, which would serve as a state-backed alternative to privately issued digital assets.
Regulators across the EU have stepped up efforts to bring digital finance under stricter oversight as the use of crypto assets grows. The MiCA regulation is one of the first comprehensive legal frameworks governing crypto operations in a major economic bloc.
Regulatory Outlook
While the upcoming guidance is not expected to alter the legal status of stablecoins under MiCA, it could play a key role in how global firms structure their token issuance strategies. By allowing functional equivalence between EU and non-EU-issued tokens within regulated entities, the clarification may streamline operational and compliance procedures across jurisdictions. The Commission is expected to release further details soon.
