The European Central Bank warns of the risk of cross-border regulatory arbitrage of stablecoins and calls for a unified regulatory framework globally

According to Foresight News, the Financial Stability Review Preview released by the European Central Bank today shows that as of November 2025, the total market value of stablecoins has exceeded US$280 billion, accounting for approximately 8% of the entire crypto market. Among them, USDT and USDC together account for nearly 90%, and the reserve assets have reached the top 20 largest money market funds in the world.

The ECB report pointed out that if stablecoins are widely adopted, it may cause households to transfer some bank deposits to stablecoins, weakening banks’ retail funding sources and increasing financing volatility. While MiCAR has banned interest payments by European issuers to curb such transfers, banks have called for similar restrictions in the United States. In addition, the rapid growth of stablecoins and their connection to the banking system may also trigger a concentrated withdrawal of funds in times of crisis. The report highlights the risks of cross-border "multiple issuance mechanisms", warns that EU issuers may have difficulty meeting global redemption requests, calls for the implementation of additional pre-establishment safeguards, and promotes global regulatory alignment.

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