Workers' safety from ionizing radiation risks requires a proposed directive, as requested by the Commission.
In the rapidly evolving world of cryptocurrencies, two distinct approaches to stablecoin regulation have emerged, with Europe and Wyoming, USA, charting different paths.
The European Union (EU) has implemented a stringent regulatory framework for stablecoins under the MiCA (Markets in Crypto-Assets) framework, effective from 2025. This regulation bans algorithmic stablecoins, requires fiat-backed stablecoins to have a 1:1 backing by liquid reserves, and mandates authorisation by EU regulators.
In contrast, Wyoming, USA, has adopted a more crypto-friendly policy, fostering an environment that encourages innovation. The state's laws provide legal clarity and a supportive regulatory framework for crypto entities, including stablecoin issuers. This approach, which defines crypto assets as property, offers special-purpose depository institutions tailored to crypto businesses, and streamlines licensing processes, has attracted numerous blockchain companies.
The EU's priority is maintaining monetary sovereignty and systemic financial stability, leading to more stringent regulations. On the other hand, Wyoming aims to promote industry growth and innovation through flexible, clear legal frameworks. However, Europe's MiCA framework prioritizing financial stability makes a rapid adoption of a Wyoming-style permissive model challenging.
There are concerns within the EU about stablecoins issued outside the bloc circumventing MiCA rules, which may force Europe to reconsider and possibly adapt more agile regulatory approaches inspired by US models to avoid systemic risk. EU policymakers could look to Wyoming’s legal clarity and accommodating stance as a way to encourage innovation and investment while still managing risks through effective oversight.
Meanwhile, the European Central Bank (ECB) is developing the Digital Euro, which, unlike the Wyoming Stablecoin model, is not an inspiration. The Digital Euro, once introduced, will be a binding means of payment, exchangeable for classic euros at the central bank. The Digital Euro is expected to create European sovereignty in payments for the first time, with banks' initial criticisms potentially being overcome as it presents a tangible opportunity for banks to integrate a wallet into their product range.
In the realm of quantum computing, the development of quantum-resistant algorithms is ongoing for the protection of cryptocurrencies. The technical capabilities for secure crypto-methods in this world are being developed under the term PQC (Post-Quantum Cryptography). The good news is that the 'good guys' are expected to maintain a sufficient lead in the long-distance race between securing cryptocurrencies and quantum computers.
Sources: 1. EU's MiCA framework for stablecoins: https://www.investopedia.com/terms/m/mica.asp 2. Wyoming's crypto-friendly policies: https://www.coindesk.com/business/2021/03/25/wyoming-passes-bill-to-create-special-purpose-depository-institutions-for-crypto-companies/ 3. Differences in stablecoin regulation between Europe and Wyoming: https://www.coindesk.com/policy/2022/02/22/eus-stability-focused-stablecoin-regime-vs-wyomings-innovation-friendly-model/ 4. The Digital Euro: https://www.ecb.europa.eu/paym/digital/html/index.en.html 5. Potential EU adaptation of US-inspired regulatory approaches for stablecoins: https://www.coindesk.com/policy/2022/02/22/eus-stability-focused-stablecoin-regime-vs-wyomings-innovation-friendly-model/ 6. Professor Hans-Gert Penzel's research on digital financial innovations: https://www.ur.de/fachgebiete/finanzwirtschaft/mitarbeiter/hans-gert-penzel/ 7. Study on the costs of introducing the Digital Euro: https://www.euractiv.com/section/banking-finance/news/digital-euro-could-cost-europe-up-to-30-billion-study-finds/ 8. Stablecoins as transaction means: https://www.investopedia.com/terms/s/stablecoin.asp
- The European Central Bank (ECB) is developing the Digital Euro, a binding means of payment exchangeable for classic euros at the central bank, while the Wyoming Stablecoin model is not an inspiration.
- The technical capabilities for secure cryptocurrencies in the realm of quantum computing are being developed under the term PQC (Post-Quantum Cryptography), with the 'good guys' expected to maintain a sufficient lead in the long-distance race between securing cryptocurrencies and quantum computers.
- EU policymakers could look to Wyoming’s legal clarity and accommodating stance as a way to encourage innovation and investment while still managing risks through effective oversight, as concerns within the EU about stablecoins issued outside the bloc circumventing MiCA rules arise.
