- The previous bill set strict conditions for all crypto assets
- Now the EU will introduce an exception for stablecoins pegged to fiat and gold
- This is a positive signal for the sector
European Commission wants make it easier for commercial lenders (i.e. banks) to hold stablecoins and tokenized assets. We write about this publication CoinDesk. Journalists refer to the reports that fell into their hands. But the EU does not officially comment on the information.
Let’s remind, that earlier eurodeputies developed the law with rigid rules. According to them, banks must issue one euro of capital for every euro of cryptocurrency they own. Also, the old project assumed that all cryptocurrencies would be assigned a risk level of 1250%. This is the maximum level, it implies high requirements for creditors who want to own digital assets.
Now the European Commission will ease the requirements for stablecoins and fiat-based tokenized assets. They will be used in the same way as for the underlying instrument (i.e. fiat). But provided that this asset does not have additional credit or market risks.
The plan will also lower the risk weight for such assets from 1250% to 250%.
Not only fiat stablecoins will be regulated according to this principle. The rule will also apply to currencies whose value is pegged to non-fiat assets (for example, gold).
Today there was another important regulation news – IOSCO recognized cryptocurrencies as a full-fledged financial asset.