Stablecoin regulatory progress in the European Union (EU) has entered a paralyzing phase. The European Commission (EC) has decided to suspend the publication of a technical guide aimed at authorizing the issuance of global digital assets such as USDC under the MiCA regulatory framework.
The technical guide is Q&A (questions and answers) is a technical or interpretive document of the European Commission. The idea is to clarify whether EU issuers can issue fungible tokens with third-country issuers, whether they can share reserves, and whether joint liability or strict separation applies.
The decision to suspend publication was in response to strong pressure from the European Central Bank (ECB) and departments of the European Parliament, which warned of geopolitical implications. and risks to regional financial stability.
The crux of the controversy lies in so-called “multi-issue” stablecoins such as USDC and USDG. The latter was published by Paxos.
This is a model that allows entities in different jurisdictions, such as the United States or Europe, to issue the same alternative asset. According to technical operating data, when the headquarters faces a liquidity crisis, You can use someone else’s reserves to cover redemptions.
When the possibility of this kind of emission opens up legal issues arise We assume that local laws do not explicitly regulate this cross-border model. Until now, stablecoins can be legally issued and operated within the EU as long as they meet a set of requirements, one of which does not take into account multiple issuance.
For the ECB, this mechanism is represents a critical vulnerabilityThat’s because, the entity said, European reserves could be used to cover withdrawals in overseas markets, evading the control of local supervisors and weakening existing prudential safeguards.
Therefore, due to the lack of consensus, caused a conflict of power:Financial institutions argue that a problem of this magnitude should not be solved by simple guidance from a commission, but by formal and rigorous regulation.
Discussion postponed until 2027
Given this scenario, sources close to the negotiations cited by Spanish media outlet Cinco Díaz indicate that final discussions regarding these digital assets will end. There is a possibility that it will be postponed until the MiCA review scheduled for 2027. But as European authorities debate in Brussels, real-world adoption of stablecoins is progressing rapidly.
Actual adoption of these assets continues to increase. As reported by CriptoNoticias, a recent report from the OKX exchange published in May 2026 revealed that stablecoins are expanding their use for everyday payments in the European Economic Area.
Specifically, transaction data made on exchange cards linked to Mastercard shows that 44% of spending is focused on food; 26% of our business is registered with supermarkets. In countries like the Netherlands, 37% of spending is in supermarkets, showing that while political debates are taking place, users are incorporating these assets into their everyday economy.
But authorities remain cautious. The ECB estimates that the market for these digital currencies will be in the range of 450 million euros to 700 million euros in early 2026. Although the ECB considers it to be small compared to the traditional financial system, it is concerned about disorderly consolidation. undermine the EU’s strategic autonomy;
From the industry, figures such as Dante Disparte, head of global policy at Circle, point out that these currencies are already legally permissible under MiCA, and that the current hurdles are a response to political factors. Meanwhile, analysts at the European Credit Research Institute warn that the regulatory paralysis puts European companies at a structural disadvantage when it comes to managing their finances and making cross-border payments.
The current uncertainty poses challenges to the ecosystem, as stable cryptocurrencies seek a home in traditional European payments infrastructure. However, there is a lack of a clear position in Brussels; Systematic implementation on the continent will be delayedEurope is in a conservative position in the face of the evolution of the global digital market.
(Tag to translate) Cryptocurrency
