EU Regulator Sees Official Journal Publication of Stablecoin Standards Before Year-End

As a seasoned analyst with years of experience navigating the intricate world of financial regulations, I find this development to be a significant step forward in the maturation of the crypto industry within the European Union (EU). The upcoming publication of the technical standards under MiCA is expected to bring much-needed clarity and stability for stablecoin issuers operating in the region.

As a crypto investor, I’m eagerly anticipating that guidelines for stablecoin issuers like Tether and Circle, operating within the European Union (EU), are expected to be formalized by year-end. This information was shared with me by a representative from the European Banking Authority (EBA).

The 15 technical standards they refer to have been put forward by the EBA (European Banking Authority), an organization that collaborated with ESMA (European Securities and Markets Authority) in their development. These standards were submitted to the European Commission, which serves as the executive branch of the EU.

A regulatory framework, referred to as MiCA, permitting crypto firms to cater to clients within the 27-member trading union with a unified license was legally implemented last year. The guidelines concerning stablecoins became effective in June, while the remaining aspects of MiCA are scheduled to be enforced by December.

The commission is reviewing the guidelines and must determine if they should be implemented as written or if modifications are necessary. These guidelines encompass topics such as authorization, stress testing, and techniques for calculating transaction volume and worth, in addition to various other matters.

After the commission endorses them, these rules must undergo review by both the European Parliament and the European Council. Following this step, they will need to be translated, formally approved, and finally published in the official journal, which serves as a platform for the EU’s formal acts and information to be made public.