ECB President Lagarde: The EU Should Address Regulatory Loopholes for Stablecoins

Jinse Finance reported that European Central Bank President Christine Lagarde stated on Wednesday that EU legislators should require foreign stablecoin issuers to adopt "safeguards" and "robust equivalent regulatory regimes" to prevent the risk of reserve runs within the EU. Speaking at a regulatory conference, she said: "European legislation should ensure that such schemes cannot operate within the EU unless they are backed by strong equivalent regimes in other jurisdictions, as well as safeguards related to asset transfers between EU and non-EU entities." She added: "This also highlights why international cooperation is indispensable. Without a level global regulatory playing field, risks will always seek out the weakest link."