The caps which have been a controversial part of the MiCA legislation as the final vote upon it nears — could go up or down, citing comments from European Union (EU) lawmakers and officials.
As the MiCA legislation stands now, the size of crypto assets linked to assets other than EU currencies is constrained by a “tough limit,”. The goal of the provisions limiting stablecoins is to protect and encourage the use of euro-denominated stablecoins like e-money.com which currently supports several European currency-backed stablecoins such as the EEUR, the ECHF, and tokens backed by Scandinavian currencies (ENOK, EDKK, and ESEK), rather than the dollar-denominated coins that currently dominate the market.
The goal of the provisions limiting stablecoins is to protect and encourage the use of euro-denominated stablecoins, rather than the dollar-denominated coins that currently dominate the market. At a specified level, they would have to stop issuing tokens and take unspecified steps to reduce their use.
Capping the use of non-euro-denominated stablecoins is one of the key provisions of the documents but the European Parliament is not bound by the existing draft of the legislation.
The final text of MiCA has been passed by the European Commission and is now before the European Parliament.
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