EU New Crypto Proposal Will Strictly Examine Stablecoins

As part of the EU's digital finance package of regulations, a crypto asset proposal led by EU politicians is about to be submitted to the European Commission. The proposal argues that stablecoins have the "potential to be widely accepted and systemic," which may pose risks to orderly monetary policy, and therefore proposes stricter scrutiny of stablecoins and eliminating interest-bearing on stablecoins. According to the proposal, in addition to examining stablecoin issuers, regulation of stablecoins will be expanded to cover fiat-pegged qualifications, the value of asset-referenced tokens, and the ratios of cross-border transfers.