EU Draws Battle Lines, Moves to Ban Key Type of Stablecoin

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A top EU financial watchdog is pushing to outlaw a specific class of stablecoins.

The European Systemic Risk Board (ESRB) has recommended a ban on “multi-issuance” stablecoins, taking direct aim at the foundational assets of the crypto market.

This reported move, while not yet law, represents a major escalation in the EU’s crackdown on crypto assets it deems a threat to financial stability. It directly challenges the business models of issuers like Circle and Paxos, which rely on broad, multi-jurisdictional operations.

The push aligns with recent aggressive rhetoric from ECB chief Christine Lagarde, setting the stage for a regulatory clash between traditional finance and the digital asset industry.