EU to announce new stablecoin rules, despite ECB warnings

The European Commission is set to unveil new rules for stablecoins, disregarding concerns from the European Central Bank (ECB) that the standards could destabilize the region’s banks. According to Financial Times, the regulations will treat stablecoins issued outside the EU as interchangeable with those issued within the bloc, creating a legal framework for cryptocurrencies that act like digital cash. Despite ECB warnings about the risks of fungibility across jurisdictions, the Commission continues to push forward with its proposals, aiming to integrate stablecoins into the EU’s regulatory landscape.