In the coming months, Campa will develop detailed rules to implement the EU’s Markets in Crypto Assets regulation (MiCA), a landmark framework requiring stablecoin issuers to be licensed and hold suitable reserves.
MiCA lets central banks intervene on proposals to issue new stablecoins. It also requires issuance to cease if the tokens become widely used with over 1 million transactions per day.
Campa further shared worries voiced by US regulators that stablecoins on decentralized permissionless blockchains could prove unsafe or unsound.
“All issuers will be subject to a robust authorization and also supervisory framework going forward,” Campa said, adding that the largest issuers will be subject to “enhanced stress testing” of their reserves.