The European Commission has reaffirmed the adequacy of current cryptocurrency regulations in addressing risks posed by stablecoins following calls from the European Central Bank (ECB) for additional safeguards. Despite the introduction of comprehensive new legislation targeting cryptocurrencies, Brussels lawmakers are facing pressure to mitigate concerns about multi-location issuance models employed by stablecoin companies. 6 prominent industry associations, including Circle, have joined forces to urge the EU Commission to clarify regulations regarding this model and ensure its smooth implementation under the Markets in Crypto-Assets Regulation (MiCA). The European Systemic Risk Board has highlighted potential risks associated with multi-location issuance structures, while the ECB expressed worries about potential “reserve runs.” Meanwhile, stablecoin issuers emphasize their strong reserves capable of handling redemptions.