European Central Bank President Christine Lagarde sounded the alarm on global stablecoins, emphasizing their potential threats to EU financial stability and highlighting the need for international regulatory cooperation. During a recent conference in Frankfurt, Lagarde stressed the risk these multi-jurisdictional coins pose to the euro’s liquidity and stability. [1] She called for a level playing field across global markets, urging for robust equivalence regimes and stringent safeguards for stablecoins operating within the EU without equivalent regulatory frameworks in other jurisdictions. This warning emphasizes potential euro outflows and their impact on the European Central Bank’s ability to conduct monetary policy effectively, including initiatives like the digital euro project. [2] Lagarde underscored that robust EU financial legislation must prevent such schemes from operating within the EU without corresponding equivalence provisions or safeguards for asset transfers between the EU and non-EU entities. The impact of this regulatory approach is not limited to USDT, USDC, and other foreign stablecoins; it also holds implications for the broader digital currency landscape as stricter regulations are likely to emerge in the near future. Lagarde’s statement reflects a trend of increased regulatory scrutiny on cryptocurrencies, particularly stablecoins, aiming to maintain the integrity of the EU financial system.