Lagarde Calls For Stablecoin Regulation Action Amid Concerns Over Non-EU Issuers

Christine Lagarde, President of the European Central Bank (ECB), has urged policymakers to address regulatory gaps in the stablecoin sector. Her call comes as she points out that existing regulations, like the Markets in Crypto-Assets (MiCA) framework within the EU, do not fully encompass non-EU stablecoins issued jointly with entities covered under MiCA. Lagarde stressed the need for robust equivalence regimes to ensure investor redemption at par value and full backing of coins by issuers, regardless of the location of issuance.