Key Takeaways
- The EBA released draft regulations for stablecoins that reference multiple currencies as part of the MiCA regulation.
- The new draft standards focus on asset reference tokens (ARTs) and set requirements for complaints procedures and issuer obligations.
- MiCA is set to fully come into effect by December, and specific rules for stablecoin issuers are anticipated to be operational this summer.
The European Banking Authority (EBA) has issued the final draft Regulatory Technical Standards (RTS) specifically targeting stablecoins tied to multiple currencies.
This initiative falls under the broad Markets in Crypto Assets (MiCA) regulation, rolled out by the EBA in collaboration with the European Securities and Markets Authority (ESMA).
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Fantom? | Animated FTM Explainer
The MiCA aims to ensure a regulated and secure environment for issuing and managing stablecoins and other crypto assets within the EU.
The newly released draft focuses on what the MiCA regulation defines as asset reference tokens (ARTs), which are distinguished from traditional stablecoins that are pegged to a single currency, such as the euro or the US dollar. Instead, ARTs may reference a basket of currencies or other assets, including crypto.
These draft RTS outline specific requirements, templates, and procedures for handling complaints received by issuers of these innovative financial instruments.
MiCA’s overarching regulation, which encompasses a broad spectrum of crypto assets beyond stablecoins, is slated to be fully implemented by December. However, the provisions explicitly targeting stablecoin issuers are expected to be enacted this summer.
The EU’s proactive approach underlines its commitment to fostering innovation while ensuring market integrity and investor protection. As the MiCA regulations edge closer to becoming operational, the crypto industry is poised for a new era of regulatory compliance and security.
The US is headed in a similar direction, with Senators Cynthia Lummis and Kirsten Gillibrand collaborating on drafting legislation for stablecoins.
