{"id":87507,"date":"2026-04-28T16:46:30","date_gmt":"2026-04-28T16:46:30","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=87507"},"modified":"2026-04-28T16:46:30","modified_gmt":"2026-04-28T16:46:30","slug":"industry-group-calls-for-mica-reforms-to-boost-euro-stablecoins","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=87507","title":{"rendered":"Industry Group Calls For MiCA Reforms To Boost Euro Stablecoins"},"content":{"rendered":"
\n

Blockchain for Europe has called for targeted reforms to the European Union\u2019s (EU) landmark crypto framework in a new report, seeking to boost the global competitiveness of Euro-denominated stablecoins.<\/p>\n

Euro Stablecoins On The \u2018Regulatory Laffer Curve\u2019 Downside<\/h2>\n

On Monday, Blockchain for Europe, an organization that represents international Blockchain industry players in the EU,\u00a0said that while the EU\u2019s Markets in Crypto Asset Regulation (MiCA) has established a framework that makes euro-pegged stablecoins safe, it has also made them less competitive than their US-denominated rivals.<\/p>\n

In its report<\/a> titled \u201cReforming MiCA for Euro Stablecoins,\u201d the industry group observes that the absence of regulation hinders market development. Conversely, excessively stringent regulations may prove ineffective, as they risk driving the targeted economic activity to less regulated or more welcoming jurisdictions.<\/p>\n

\u201cIf compliant projects do not ultimately locate domestically, then regulation fails to achieve its objectives,\u201d Blockchain for Europe affirmed, adding that a framework\u2019s goal is to have a regulated but strong local industry.<\/p>\n

The report noted that euro-pegged stablecoins account for less than 1% of global stablecoin volume, far below the level the euro\u2019s broader role in global markets would suggest.<\/p>\n

Under this premise, the group argues that the ground-breaking, comprehensive legislation has placed Europe on the \u201cdownward-sloping part of the regulatory Laffer curve,\u201d as skepticism prevails among European policymakers regarding the trajectory of euro electronic money tokens (EMTs).<\/p>\n

Last year, the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) expressed<\/a> concerns about financial instability risks, pushing for stricter regulations, including a ban on multi-issuance stablecoins in the bloc.<\/p>\n

Nonetheless, the European Banking Authority (EBA) addressed these concerns in November, asserting that MiCA already has safeguards against potential risks posed by the tokens.<\/p>\n

Reforming MiCA To Boost The European Market<\/h2>\n

Blockchain For Europe suggested multiple reforms to improve the regulated European stablecoin market and maximize MiCA\u2019s positive impact on the industry, the Savings and Investment Union, European citizens, and businesses.<\/p>\n

To achieve this, the industry group proposed allowing remuneration<\/a> of euro-denominated EMTs with adequate regulation to ensure liquidity, arguing that there is no justification for such a ban.<\/p>\n

In addition, the industry group suggested removing or reducing the minimum bank deposit requirement, replacing the 30% and 60% thresholds with a principle-based approach to reserve composition. This would allow issuers to allocate across high-quality liquid assets without forcing concentrated exposure to bank deposits.<\/p>\n

They also proposed broadening and diversifying the eligible reserve asset suite and introducing a more proportionate and risk-based transparency regime<\/a> for EMTs to reduce concentration risk, improve market functioning, and avoid raising barriers to entry.<\/p>\n

Meanwhile, the report listed enabling calibrated access to central bank infrastructure and providing clarity and a \u201cworkable framework\u201d for cross-border stablecoin usage as potential reforms to support the token\u2019s competitiveness.<\/p>\n

Europe Eyes Centralized Crypto Oversight<\/p>\n

Blockchain for Europe\u2019s report comes as the European Central Bank backs a proposal to shift oversight of key financial markets, including crypto, from national authorities to a centralized supervisory authority.<\/p>\n

As reported<\/a> by Bitcoinist, the ECB has supported the European Commission (EC)\u2019s plan to integrate the EU\u2019s capital market through a centralized entity, the European Securities and Markets Authority (ESMA), to enhance competitiveness and harmonize regulation.<\/p>\n

The EU initially proposed the plan, led by France and Germany, during MiCA\u2019s development, but ultimately scrapped the plan. Notably, multiple nations and industry participants have opposed the measure.<\/p>\n

In November, the Secretary General of Blockchain for Europe, Robert Kopitsch, argued<\/a> that a shift towards a more centralized supervisory model should happen in the future based on \u201cconcrete\u201d evidence gathered from MiCA\u2019s initial years, and pointed out that local regulators have more direct and frequent interactions with firms.<\/p>\n

\"Stablecoin,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Blockchain for Europe has called for targeted reforms to the European Union\u2019s (EU) landmark crypto framework in a new report, seeking to boost the global competitiveness of Euro-denominated stablecoins. Euro Stablecoins On The \u2018Regulatory Laffer Curve\u2019 Downside On Monday, Blockchain for Europe, an organization that represents international Blockchain industry players in the EU,\u00a0said that while […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-87507","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/87507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=87507"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/87507\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}