In a motion for a resolution on digital assets published in late February, MEP Johan Van Overtveldt (ECR, Belgian) points to an area of legal uncertainty in the MiCA Regulation governing crypto-asset markets in the European Union.
This uncertainty concerns the possibility of the same stablecoin being issued simultaneously by an entity established in the EU and by another located outside the EU (‘multi-issuance’), when these tokens are completely interchangeable and cannot be distinguished according to their issuer.
According to the MEP, this shortcoming highlights a lack of legal certainty and justifies strengthening prudential safeguards as well as cooperation and crisis management mechanisms.
In his draft text, Mr Van Overtveldt “calls on the [European] Commission to come forward with a legislative proposal urgently on this matter to ensure legal certainty, and to provide strong prudential safeguards, robust cooperation arrangements, and enhanced crisis management protocols”.
In addition, the rapporteur calls for a more in-depth macroprudential approach, in particular to the risks associated with leverage in the crypto-asset sector, interlinkages with the non-bank financial players (funds, asset managers, etc...), and the supervision of large groups active in several segments of the crypto-asset market.
MEPs on the Committee on Economic and Monetary Affairs have until Wednesday 18 March to table their amendments.
Contrary to the Eurogroup (see EUROPE 13737/8), the European Central Bank is of the opinion that the prudential requirements of the MiCA Regulation should be tightened, in particular to address the issue of the ‘multi-issuance’ of stablecoins (see EUROPE 13725/27).
See the draft resolution: https://aeur.eu/f/kz7 (Original version in French by Bernard Denuit)