20

October

2025

ESRB urges Commission to provide clarity on a progressing stablecoin framework under MiCA

On October 20, 2025, the European Systemic Risk Board (ESRB) issued a report and recommendation assessing systemic risks arising from stablecoin arrangements and broader crypto asset activity. The ESRB report:

  • Warns that large stablecoins could transmit liquidity stress into the broader financial system when they function as money like instruments without adequate safeguards;
  • Recommends to the European Commission to clarify whether, and under what conditions, third-country multiple-issuer stablecoin arrangements may operate under the Markets in Crypto Assets (MiCA) Regulation; and
  • Calls for EU institutions and the regulatory authorities of member states to prepare additional supervisory and legal measures if the Commission does not act and set indicative milestones for such measures through 2027, emphasising the monitoring of liquidity, redemption practices, and cross-border operational dependencies.

MiCA provides the baseline regulatory framework for stablecoin issuance and related services in the European Union. MiCA has been applicable since December 30, 2024, and the European Securities and Markets Authority (ESMA) has continued to publish supervisory materials to support consistent implementation. MiCA transitional provisions remain available until July 2026 for certain incumbent providers, meaning stablecoin compliance and supervisory convergence will continue to develop during the transition period.


European Union (Regulatory)

History:

  • Oct 20, 2025: The ESRB issues a report on systemic risks from stablecoins and crypto assets and urges the Commission to provide clarification of MiCA’s treatment of multiple-issuer stablecoin arrangements through 2027.
  • Dec 30, 2024: The MiCA Regulation comes in full force in all member states in the European Economic Area (EEA).
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Tom Momberg

+17186645458 tom.momberg@dlxlaw.com

Tom advises clients in an array of matters related to blockchain technology, decentralized finance, banking and payments systems, financial products, and financial technology applications. He joined DLx Law as an attorney after working as in-house counsel for a payments and banking software service provider, advising on various legal and regulatory matters, operations, risk, customer due diligence, and corporate best practices.

Tom received his J.D. from George Mason University Law School in Virginia and his B.A. from the University of Wisconsin-Milwaukee. Tom is a former journalist, and, while in law school, he interned for DLx Law and served as a law clerk for several federal institutions in Washington, D.C., including the CFTC, FCC, and House Judiciary Committee. Tom is admitted to practice law in the District of Columbia and the State of Oregon.

Angela Angelovska-Wilson

+12023651448 angela@dlxlaw.com

Angela is an early distributed ledger technology adopter and a leading authority in the evolving global legal and regulatory landscape surrounding distributed ledger technology and smart contracts. Prior to co-founding DLx Law, Angela served as the Chief Legal & Compliance Officer of Digital Asset and was part of the founding team.

Prior to joining Digital Asset, Angela was a partner at Reed Smith where she regularly advised clients on the implementation of new technologies to finance and the complex regulatory schemes involved in the development, creation, marketing, sale and servicing of various financial services and products. Before Reed Smith, Angela spent most of her career in various roles at Latham & Watkins, where she was recognized by The Legal 500 US among the top finance attorneys in the U.S.

Angela has a deep understanding of the Fin-Tech industry and in particular the distributed ledger industry, having been involved in a number of startups in various roles, as an employee, entrepreneur and advisor. In addition to DLx Law, Angela is also co-founder of Sila Inc., an innovative technology company.