EU Urged to Implement Strong Regulations for Foreign Stablecoins

According to PANews, European Central Bank President Christine Lagarde emphasized the need for EU lawmakers to enforce stringent regulations on foreign stablecoin issuers. Speaking at a regulatory conference on September 3, Lagarde called for the implementation of 'safeguards' and 'robust equivalent regulatory regimes' to mitigate the risk of reserve runs. She stressed that such initiatives should only operate within the EU if supported by equivalent systems from other jurisdictions and accompanied by asset transfer safeguards. Lagarde highlighted the significance of international cooperation in this context, warning that without a fair global regulatory environment, risks could shift to the weakest links.