A proposed ban from a European financial watchdog could disrupt the core operations of major stablecoin issuers in the region.
The European Systemic Risk Board has recommended prohibiting “multi-issuance” stablecoins, a category that includes assets from companies like Circle (USDC) and Paxos.
According to a report from Bloomberg, the non-binding proposal aims to mitigate financial stability risks. If enacted, it would represent one of the most restrictive regulatory actions against crypto in a major economy, forcing a significant restructuring for key industry players.
The move underscores the EU’s determination to control its financial landscape, even as it explores its own digital euro project.
