EU's Crucial Role in Stablecoin Regulation Under MiCA: EBA Officials

• EU Banking Regulator Discusses Proposed Guidelines for Stablecoin Issuers
• Historic Crypto Regulation Framework in the EU
• Details from the EBA Public Hearing
• A Call for Stakeholder Participation

EU Banking Regulator Discusses Proposed Guidelines for Stablecoin Issuers

On a recent Thursday, the European Union's banking regulator, the European Banking Authority (EBA), conducted a public hearing. This event was organized to talk about the operational guidelines being proposed for stablecoin issuers, which are a part of the upcoming Markets in Crypto Assets (MiCA) framework. The officials at the hearing emphasized the importance of public and industry engagement in forming appropriate rules.

Historic Crypto Regulation Framework in the EU

The European Union (EU) established a precedent in 2023 by finalizing the first detailed framework for crypto regulation in a major jurisdiction. This framework is expected to come into full effect in December. Since its finalization, a multitude of EU regulators, including the European Securities and Markets Authority (ESMA) and the EBA, have been working on their respective rules and guidelines for crypto issuers and firms in accordance with the MiCA mandates. The EBA has the specific responsibility of developing a unified MiCA rulebook for stablecoin issuers and further elaborating on associated policies that supervisors will need to implement.

Details from the EBA Public Hearing

The EBA policy officials provided a detailed explanation of the proposed guidelines for issuers of asset-referenced tokens (ART) during the public hearing. According to MiCA, ART is defined as a type of crypto that employs the value of one or more official currencies or assets to maintain stability. The hearing included a discussion on the EBA's first set of guidelines on the internal governance of companies that issue stablecoins, management requirements, compliance, remuneration, and conflict of interest disclosures.

A Call for Stakeholder Participation

Isabel Vaillant, EBA director of prudential regulation, encouraged participants to consider the public hearing as a platform for dialogue. She stressed the importance of understanding and paying attention to these guidelines. Another EBA official echoed this sentiment and emphasized that gathering input from various stakeholders is vital. Several of the EBA's open consultations are due to end later this month, and the EBA has plans to host similar hearings in the following week. The feedback gathered from these consultations will be used to finalize the EBA's rulebook.

Edited by Jonathan Stoker