The European Union is preparing to soften its approach to foreign-issued stablecoins, paving the way for U.S. dollar-backed tokens such as USDC and USDT to circulate more freely across the bloc, according to a report by the Financial Times.
The European Commission is expected to issue formal guidance allowing stablecoins issued outside the EU to be treated as equivalent to those registered within the region.
The move would mark a significant policy shift in how non-EU digital assets are classified and regulated.
Until now, EU regulations have posed a barrier to adoption of dollar-pegged stablecoins in European financial markets. The upcoming guidance would eliminate that hurdle, potentially expanding the role of U.S. stablecoins in European crypto trading, DeFi, and cross-border payments.
The decision is seen as a strategic effort to increase digital asset liquidity in the EU without compromising on regulatory standards. If confirmed, it could also help integrate stablecoins more fully into MiCA (Markets in Crypto-Assets Regulation) frameworks as they continue to roll out across the region.
