Industry Input ‘Really Important’ to Stablecoin Rulemaking Under MiCA, EU Banking Officials Say

The European Union’s banking regulator held a public hearing on Thursday to discuss its proposed operational guidelines for stablecoin issuers under the upcoming Markets in Crypto Assets (MiCA) framework. During the hearing, officials urged the public and industry members to engage with them to get the rules right.

The EU made history in 2023 when it finalized the first comprehensive framework for crypto regulation in a major jurisdiction, set to take full effect in December.

Since then, the bloc’s regulators, from the European Banking Authority (EBA) to the European Securities and Markets Authority (ESMA), have been consulting on their rules and guidelines for crypto issuers and firms as mandated by MiCA. The EBA, for instance, is charged with creating a single rulebook under MiCA for stablecoin issuers and will later elaborate on related policies supervisors must implement.

During Thursday’s hearing, EBA policy officials broke down its proposed guidelines for issuers of asset-referenced tokens (ART), which MiCA defines as crypto that references the value of one or more official currencies or assets to maintain stability.

The hearing covered EBA proposals for the first batch of guidelines on internal governance of stablecoin issuing companies, requirements for management, compliance, remuneration as well as disclosures for conflicts of interest.

“We pay high attention to this batch and need also a very good understanding with you, so please seize this public hearing as an opportunity to dialogue with us so we start on the right footing,” Isabel Vaillant, EBA director of prudential regulation, said during the hearing. Another official said it was “really important” to get input from various stakeholders.

With several of its open consultations set to close later this month, the EBA is set to host similar hearings next week. Feedback from the consultations will be used to finalize its rulebook.