The European Banking Authority (EBA) has stated that the European Union’s current MiCA (Markets in Crypto Assets) directive already contains adequate safeguards against risks linked to stablecoins. The comment comes after the European Central Bank (ECB) warned that the tokens could pose threats to financial stability.

Both the ECB and the European Systemic Risk Board (ESRB) recently called on the European Commission to consider banning the so-called multi-issuance model, under which global stablecoin issuers treat tokens circulating within the EU as interchangeable with those issued outside it.

The ESRB, chaired by ECB President Christine Lagarde, warned in a report that a sudden wave of redemptions by non-EU holders could “amplify runs within the bloc.” Responding to these concerns, an EBA spokesperson said the report correctly reflects the “inherent risks related to potential massive redemption requests,” but their severity depends on the business model and scale of each stablecoin.

“Based on these elements, necessary safeguards following MiCA should be put in place to mitigate the risk,” the spokesperson added.

The EBA also noted that it is awaiting clarification from the European Commission on whether multi-issuance is permitted under MiCA.

Issuers of stablecoins—cryptocurrencies pegged to fiat currencies, usually the U.S. dollar—say they hold matching reserves to ensure redemption at par value.

Under MiCA, which started to take effect earlier this year and will be fully implemented by 2026, stablecoin issuers must:

• Maintain adequate reserves;

• Meet transparency obligations;

• And be subject to regulatory oversight by national authorities.

The largest stablecoins will come under the direct supervision of the EBA.Although still a relatively small part of the global financial system, stablecoins are expanding rapidly, led by major players such as Tether, based in El Salvador, and Circle’s USDC. Circle’s euro-regulated USDC stablecoin currently has about $75 billion in circulation, making it the largest EU-regulated token of its kind.

“From a liquidity point of view, issuers need to hold an amount of liquid assets to meet potential redemption requests. And this should work at a global level,” said Luis del Olmo, senior expert at the EBA, in an interview with Reuters.

According to sources familiar with two national regulators’ positions, both share the concerns of the ECB and ESRB. One of them said they fear the U.S. could block the transfer of reserves to Europe during large redemption waves. Nevertheless, the European Commission has indicated it does not see a need for major changes to MiCA at this stage.

Sources:

https://www.reuters.com/sustainability/boards-policy-regulation/existing-eu-crypto-rules-address-stablecoin-risk-banking-regulator-says-2025-11-12/

https://www.cryptopolitan.com/europe-no-to-revise-crypto-rules-stablecoins/

https://finance.yahoo.com/news/existing-eu-crypto-rules-address-141407332.html