The UST collapse triggered regulation, and the European Commission considered banning the large-scale issuance of stable currency

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According to a document obtained by coindesk, the European Commission is considering strict restrictions on the wide use of the stabilization currency. Commission officials have proposed tough measures to stop issuing stable coins when the daily trading volume exceeds 1 million, that is, regulators can order any stable coin issuer with a market value of more than 200 million euros ($211 million) and a daily trading volume of more than 1 million to stop issuing until these figures return below the threshold, and two insiders confirmed the details.

The report said that the document was marked as an "informal document", which means that it does not reflect the official position of the Committee. The European Parliament tends to adopt a more moderate approach, reclassifying successful stabilization currencies and subject them to the supervision of the European Banking authority.

"The Commission's services prefer to restrict the issuance of art [reference asset tokens]," the document said He warned that the practice of Parliament forcing issuers to repay customers for their initial purchase of tokens could endanger financial stability.

"Monitoring and limiting the art threshold, which is widely used as a means of payment, can be further discussed at the political level," the document wrote The European Commission does support the triggering of additional measures by specific numerical restrictions, rather than leaving it to the discretion of regulators.

Mica has introduced measures to ensure that encrypted assets are well managed, honestly provided to investors and have considerable reserves, especially when they reach a considerable scale. The additional proposal would apply to a widely used stable currency linked to a basket of assets, rather than a stable currency linked to a single legal tender such as the euro.

This issue may determine the future of the EU market. Unlike the United States, there is no major stable currency in the EU market that can help pay and decentralized finance. The decoupling of the UST stable currency, which should have maintained the price of $1, fell below 35 cents on Tuesday, making it possible to focus attention on the importance of sound regulation.

According to the previous report of Bitui, at the hearing on Tuesday, US Treasury Secretary Janet Yellen called for the adoption of stable currency legislation by the end of the year and stressed the risks surrounding terrausd (UST), "A stable currency called terrausd (UST) has experienced a sharp decline and devaluation. I think this just shows that it is a fast-growing product and there are risks of rapid growth... There are risks in financial stability and we need an appropriate framework," she said. Yellen said that the passage of stable currency legislation by Congress was "very important, even urgent".

Two people familiar with the matter disclosed that although the US federal government recently said that the stable currency may pose an increasing threat to the US financial system, the financial stability supervision commission (FSOC) has not held a discussion meeting on the potential risk of the breakaway of the stable currency UST.

Author: Amy Liu


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