European Commission officially proposes regulatory framework for crypto-assets and stablecoins

The European Commission has today officially proposed a regulatory framework for crypto-assets and stablecoins after a leaked draft proposal went viral last week.

The 168-page official draft proposal (provisional), published Thursday, highlights the need for a "sound" legal framework, clearly defining the regulatory treatment of all crypto-assets that are not covered by existing EU financial services legislation.

Crypto assets, especially stablecoins, have the potential to become widely accepted, said the commission. Hence, they would be subject to "more stringent requirements" regarding capital, investor rights, and supervision. The proposal is in line with the leaked version from last week.

The commission has today proposed a "bespoke" regime for crypto-assets and stablecoins. "The bespoke regime for crypto-assets will ensure a high level of consumer and investor protection and market integrity, by regulating the main activities related to crypto-assets," said the commission. The main activities include such as crypto exchange and wallet services.

https://www.theblockcrypto.com/post/78713/european-commission-official-proposal-regulation-crypto-assets-stablecoins