The context: the MICA framework, which covers the regulation of digital assets within the European Union, entered into vigorous in December 2024 and now applies to all EU countries, France included. The Commission has challenged the fears of the ECB for mica rules, alleging that it amplifies concerns related to stablecoins to promote a controversial digital Euro program. According to her, Europe is already lagging behind the web3, and more restrictions would probably only exacerbate this. The ECB thinks that Mica is not strict enough the military framework of law has only entered into force for four months, but the ECB has already had serious doubts about it. According to a recent report, the European Central Bank is concerned about the relative competitiveness of stablecoins backed by the US dollar, which could take over the European market. As a commentator expressed, Mikko Ohtamaa, there will be good reasons to worry about this: “The EU had the advantage of first arrival with regulation and she finally spoiled it. No European stable is competitive at the international level due to hostility to inherent affairs that has been integrated into Mica by banks’ lobbying efforts and other traditional financial institutions, “he said on social networks. Since the EU addressed the subject of the regulation of stablecoins, its approach has deeply impacted the region market. Indeed, after the entry into force of Mica, Tether completely left the European market. More recently, Ethena Labs also left Europe after rejection of her request for Mica approval. However, these companies have not encountered such problems in the United States. It is interesting to note that the concern of the ECB does not concern a possible excessive severity of Mica which would limit innovation in the region. As Politico stated, she worries rather that existing regulations are not strict enough. The ECB has recognized the openly declared objective of President Trump to use the stablecoins to promote the domination of the dollar and fears that American assets will submerge European markets. She therefore wishes to retaliate directly by tightening her regulatory framework. However, the European Commission reacted hostility to the changes proposed by the ECB for Mica. The Commission would have said that some of these concerns were “absurd” and suggested that the ECB only continued to push for an already controversial digital euro. In parallel, it seems that most EU institutions are satisfied with existing regulations on stablecoins. Furthermore, if the ECB gets its proposed reforms from Mica, will these changes really have an impact? Finally, the Crypto market reacted with a fairly shocking ambivalence to its recent rate drops. Europe is thus likely to be delayed in the global economy of the web3, and more restrictions are probably not the dream solution. Morality of the story: a too suffocated crypto ends up escaping from the meshes of the net. Notice of non-responsibility Non-responsibility notice: In accordance with the guidelines of The Trust Project, BEINCRYPTO undertakes to provide impartial and transparent information. This article aims to provide exact and relevant information. However, we invite readers to verify the facts of their own and consult a professional before making a decision on the basis of this content.
The ECB fears that the mica rules will not be strict enough
