Key Points: The European Banking Authority (EBA) plans to finalize and publish technical standards for issuers of stable coins by the end of 2024. The technical standards for stable coins
address MICA-compliant authorization, stress testing and transaction evaluation.
Eba will publish technical standards for stable coin issuers in the EU's official journal by the end of 2024, according to CoinDesk. These technical standards for stable coins are necessary to develop a comprehensive approach to the fast-growing sector within the broader cryptoasset market structure known as
MiCA.
the EBA, together with the European Securities and Markets Authority, have submitted 15 technical standards for stable coins to the European Commission for approval. The technical standards for stable coins address key issues such as approval, stress testing and assessment of trading volume and value. The special rules for stable coins came into force in May this year, but the rest of the Mica system will not be fully implemented until May. The European Commission
is currently reviewing the technical standards for the submitted stable coins to see if they will be approved in the submitted format or if changes will be required. Once approved by the European Commission, the standards will be reviewed by the European Parliament and the European Council. They must also be translated and officially adopted before they can be published in the Official Journal of the EU, the official repository of EU legislation.
The EBA initially published draft guidance for public consultation in 2023/7. This was followed by the publication of final draft technical standards developed jointly with ESMA in 2024/3. These technical standards for stable coins, when finally published, will create certainty for issuers of stable coins to pass stringent stress test approval requirements and will be an important step in the EU's oversight of the new stable coin sector.
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