Lagarde Urges EU to Tighten Stablecoin Rules, Aiming for Global Alignment

European Central Bank (ECB) President Christine Lagarde has underscored the urgent need for stricter regulations on stablecoins issued outside the European Union. Speaking at a regulatory conference in Frankfurt, Lagarde stressed that foreign issuers operating within the EU must meet stringent requirements to align with the bloc’s Markets in Crypto-Assets Regulation (MiCA). This regulation mandates full reserve backing and prohibits redemption fees for stablecoins, designed to maintain stable value. Lagarde warned about potential exploitation by foreign issuers seeking to bypass stricter EU rules. ]