EU Recommends Ban on Multi‑Issuer Stablecoins

EU financial authorities led by the ESRB and backed by the ECB have recommended banning “multi‑issuance” stablecoins — a non‑binding move intended to curb cross‑border redemption, liquidity and legal risks that could pressure lawmakers. ECB officials, including Christine Lagarde, warned that gaps in current rules could expose the bloc to systemic risk and have renewed interest in a digital euro as a policy alternative. Industry adoption is continuing: Deutsche Börse has signed an MoU with Circle to integrate USDC and EURC into trading, settlement and custody, and Circle has secured the first MiCA approval. Other market developments include Societe Generale’s Forge deploying euro‑ and dollar‑stablecoins on DeFi platforms, Brex enabling USDC payments via Column Bank, and a consortium of European banks planning a euro stablecoin. The UK is proposing caps on retail stablecoin holdings while the US has advanced bank‑issued digital asset legislation, highlighting differing regional approaches to stablecoin oversight.