European Central Bank President: EU Should Address Stablecoin Regulation Gaps

BlockBeats News, September 3rd, European Central Bank President Lagarde stated on Wednesday that EU lawmakers should require foreign stablecoin issuers to implement "safeguards" and a "robust equivalent regulatory regime" to prevent the risk of reserve run within the EU.

She expressed during a regulatory meeting: "European legislation should ensure that such schemes cannot operate within the EU unless they have strong support from equivalent regimes in other jurisdictions and safeguard measures related to asset transfers between EU and non-EU entities."

She added: "This also underscores why international cooperation is indispensable. Without a fair global regulatory environment, risks will always seek out the weakest link." (Golden Finance)