According to the report, the European Commission will soon issue formal guidance enabling stablecoins issued outside the EU to be treated as equivalent to their European-registered counterparts.
The move would clear a key regulatory hurdle that has so far limited the reach of dollar-backed stablecoins in Europe’s financial markets.
The proposed changes would allow global issuers to bypass those limitations for branded versions of their tokens already operating under EU supervision.
The Financial Times cited several unnamed officials familiar with the matter, who indicated that the Commission’s guidance aims to avoid a scenario in which the EU becomes a “flyover zone” for digital assets, left behind by faster-moving markets in the U.S. and Asia.
The ECB has not publicly commented on the upcoming guidance, but sources told the FT that internal opposition remains strong. EU officials are reportedly working on a compromise that would give national regulators more discretion in assessing the risks associated with foreign stablecoins.
If enacted, the new approach could mark a turning point for the role of U.S. dollar-backed stablecoins in Europe, reinforcing the dollar’s dominance in digital asset markets while signaling the EU’s desire to remain a competitive hub for crypto innovation.
