EU prepares to finalise stablecoin rules by end of 2024

The European Union (EU) is on track to make its stablecoin regulations official by the end of 2024, as part of the broader Markets in Crypto Assets (MiCA) framework.

The European Banking Authority (EBA) has indicated that the standards, which were developed in collaboration with the European Securities and Markets Authority (ESMA), are expected to be published in the EU’s official journal before the year ends.

These standards outline how stablecoin issuers like Tether (CRYPTO:USDT) and Circle can operate within the EU.

These standards are part of MiCA, which was passed into law last year to establish a comprehensive regulatory framework for cryptocurrencies within the EU’s 27-member trading bloc.

While some aspects of MiCA, including rules for stablecoin issuers, came into force in June 2024, the remaining provisions are set to take effect by December.

The rules aim to provide a unified licensing system for crypto companies to operate across the EU with a single license.

The technical standards currently being reviewed by the European Commission cover a range of critical areas.

They include guidelines for authorization procedures, stress testing requirements, and methods to estimate transaction volumes and values for stablecoin issuers.

The European Commission is considering whether to adopt the proposed standards as they are or request revisions.

After the Commission’s review, the standards must be scrutinized by both the European Parliament and the European Council.

Following these approvals, the rules will go through translation and a formal adoption process before their publication in the EU's official journal.

This final step is crucial, as it marks the formal implementation of the rules, making them binding across all EU member states.