<ul data-eligibleForWebStory="true"><li>The European Commission is preparing to announce rules for governing the stablecoin market, despite warnings from the European Central Bank.</li><li>Stablecoins, pegged to sovereign currencies and backed by reserves, are increasingly popular with $250 billion in circulation worldwide.</li><li>Central banks, including the ECB, are concerned about potential risks and loopholes in stablecoin regulations that could strain banks during market stress.</li><li>The EU is mandating rules for stablecoins issued within the bloc, requiring reserves to be held mainly in EU-based banks to mitigate risks of reserve runs and contagion.</li></ul>

Europe Reportedly Ignores Central Bank’s Warnings on Stablecoins

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