The Italian economy and finance minister expressed concerns that US stablecoin regulations are more alarming than President Donald Trump’s tariffs, pointing to the risk these digital assets pose to the euro’s supremacy in international transactions.
While addressing an audience in Milan, Giancarlo Giorgetti noted that although tariff disputes garner significant media attention, emerging US regulations on dollar-backed stablecoins represent an “even more perilous” risk to the stability of European finances, as reported by Reuters.
Giorgetti stated that US stablecoins enable individuals to invest in a widely recognized approach for international transactions without needing to establish a US bank account. He cautioned against underestimating the increasing allure of US stablecoins for Europeans.
The minister urged EU policymakers to implement more measures to enhance the euro’s status as a global currency. He remarked that the digital euro, currently being developed by the European Central Bank (ECB), will be crucial to reducing the reliance of Europeans on foreign alternatives.
Currently, the regulation of stablecoins in the US remains disjointed. Rather than a consolidated approach, various agencies apply existing regulations to oversee stablecoins. Nonetheless, legislators are endeavoring to enact reforms, with several stablecoin-related bills moving forward. On April 2, the US House Financial Services Committee approved the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. The legislation is now on its way to the House for a complete vote. This bill was introduced on February 6 by Committee Chair French Hill alongside Digital Assets Subcommittee Chair Bryan Steil. It mandates that stablecoin issuers disclose details about their operations, including the backing of their tokens. Furthermore, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act establishes directives that oblige issuers to sustain reserves in a one-to-one backing, adhere to Anti-Money Laundering (AML) regulations, safeguard consumers, and enhance dollar leadership in the worldwide economy. The GENIUS Act still awaits ratification by both Congressional chambers and a presidential signature to become law. Related: Stablecoins are the optimal method to assure US dollar supremacy — Web3 CEO In addition to Giorgetti, ECB Executive Board member Piero Cipollone also called on European lawmakers to elevate their initiatives against the dominance of dollar-backed stablecoins in Europe. On April 8, Cipollone published an article voicing concerns regarding the rising popularity of US stablecoins. The official proposed the introduction of a central bank digital currency to counter this challenge to the euro, asserting that it would assist in maintaining the monetary sovereignty of the eurozone. Magazine: Memecoin degeneracy is financing groundbreaking anti-aging research
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