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EU Set to Ease Rules on U.S. Dollar-Backed Stablecoins Like USDT and USDC

  • The European Commission is expected to issue guidance allowing stablecoins like USDT and USDC, issued outside the EU, to be treated as equivalent to those registered within the EU.
  • This move represents a policy shift in how non-EU digital assets are classified and regulated in European financial markets.
  • The upcoming guidance aims to eliminate barriers that EU regulations have posed to the adoption of dollar-pegged stablecoins in the region, potentially expanding the role of U.S. stablecoins in European crypto trading, DeFi, and cross-border payments.
  • The decision is strategic, aiming to increase digital asset liquidity in the EU while maintaining regulatory standards and integrating stablecoins further into MiCA frameworks.

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