EU Believes Existing Crypto Regulations Address Stablecoin Concerns

The European Banking Authority (EBA) asserts that current regulations in the EU are sufficient for addressing the risks posed by stablecoins, according to PANews. While the ECB and ESRB have issued warnings about the potential stability threats from these cryptocurrencies, the EBA believes existing frameworks adequately address these concerns. However, EBA officials acknowledged the risk of ‘potential large-scale redemption requests’ as a factor influencing risk management strategies. Notably, they emphasized that the level of risk depends significantly on the operational structure and scale of stablecoin issuers.