ECB, European Commission in discussions on MiCA amendments in light of US crypto policy: report
The European Central Bank has expressed the opinion that support for cryptocurrencies in the United States could threaten the financial stability of the European Union.
Author: Camomile Shumba | Edited by: Sheldon Reback Updated: April 23, 2025, 3:07 PM Published: April 22, 2025, 3:23 PM
Key points:
- The European Central Bank is pushing for changes to the European Union's crypto-asset legislation.
- The bank is concerned that US support for cryptocurrencies could negatively impact the EU's financial stability, Politico reports.
- The European Commission does not share the ECB's views.
The European Central Bank is seeking to amend the European Union's crypto-asset regulations (MiCA) just months after they came into force, as it worries that U.S. support for cryptocurrencies could cause economic harm to the bloc's 27 countries, Politico reports.
The bank is seeking a review of MiCA, whose stablecoin provisions came into effect last June and were fully implemented at the end of that year, putting it at odds with the European Commission, according to Politico, which cited the policy document. Neither the ECB nor the commission responded to CoinDesk's request for comment.
The central bank is concerned that bills pending in the US Congress, such as the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guidance and Establishing National Innovation for US Stablecoins (GENIUS) Act, could further increase the influence of dollar-backed stablecoins. Standard Chartered predicts that the stablecoin sector could grow 10-fold to $2 trillion within three years of the bill’s passage.
At an April 14 meeting with senior EU government officials to discuss support for U.S. cryptocurrency, the ECB circulated a document arguing that MiCA needed a major overhaul, Politico reported, citing two unnamed diplomats and an EU official. That position proved unpopular.
“Few [countries] supported the idea that we should rush and change [the rules] just on this basis,” one diplomat said.
The Commission argued that it was “too early” to draw conclusions about the impact of the US crypto environment on EU financial stability, and only one global stablecoin has been legalized under the new rules. Circle, the issuer of USDC, the second-largest stablecoin, received the first stablecoin license under MiCA last July.
“The risks associated with such global stablecoins appear to be overstated and can be effectively managed within the existing legal framework,” the Commission said in a document distributed at the meeting.
Read more: EU Stablecoin Crackdown Set to Come into Force Soon, Issuers Are Running Out of Time
