{"id":406995,"date":"2025-10-03T22:10:40","date_gmt":"2025-10-03T16:40:40","guid":{"rendered":"https:\/\/dripp.zone\/news\/eu-risk-watchdog-sounds-alarm-on-stablecoin-safeguards-crypto-news\/"},"modified":"2025-10-03T22:25:53","modified_gmt":"2025-10-03T16:55:53","slug":"eu-risk-watchdog-sounds-alarm-on-stablecoin-safeguards-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/eu-risk-watchdog-sounds-alarm-on-stablecoin-safeguards-crypto-news\/","title":{"rendered":"EU Risk Watchdog Sounds Alarm on Stablecoin Safeguards – Crypto News"},"content":{"rendered":"
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In brief<\/h4>\n
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  • EU regulators have warned that cross-border schemes could create redemption pressures in the bloc, forcing ECB intervention.<\/li>\n
  • The EU has one of the world\u2019s strictest crypto regimes and requires stablecoins to be fully backed by reserves.<\/li>\n
  • The stablecoin market is currently valued at over $300 billion, dominated by U.S. dollar-based tokens.<\/li>\n<\/ul>\n<\/div>\n

    The European Union’s top financial risk watchdog has called for urgent policy action to address vulnerabilities in stablecoins<\/span><\/a>\u00a0that straddle the bloc and other jurisdictions, warning of potential systemic shocks if safeguards are not strengthened.<\/p>\n

    In a statement<\/a>, the European Systemic Risk Board (ESRB), chaired by European Central Bank (ECB) President Christine Lagarde, warned that “third country multi-issuer schemes \u2013 with fungible stablecoins issued both in the EU and outside \u2013 have built-in vulnerabilities which require an urgent policy response.”<\/p>\n

    Stablecoins, designed to maintain a steady value by pegging to assets like currencies or baskets of reserves, have grown into a market worth over $300 billion, according to DefiLlama data<\/a>. The vast majority are dollar-based, led by Tether\u2019s USDT, which alone commands over 58.53% dominance in the sector.<\/p>\n

    On prediction market Myriad, launched by\u00a0Decrypt<\/i>‘s parent company DASTAN, users anticipate further rapid growth in the sector, placing a 72% chance on the stablecoin market cap topping $360 billion before February<\/a>.<\/p>\n