MiCA Won’t Save Us from a Stablecoin Crisis. It Might be Building One
MiCA legitimizes stablecoins by focusing on micro-prudential rules, potentially ignoring macro-prudential risks that could cause a systemic crisis.Summary
The European Union's Markets in Crypto-Assets (MiCA) regulation is intended to bring order to stablecoins through proof-of-reserves and capital requirements, but the author argues it rests on the flawed assumption that proof-of-reserves equals proof-of-stability. As stablecoins gain mainstream legitimacy and compete with bank deposits, they introduce macro-prudential risks that MiCA ignores, such as undermining monetary transmission and causing credit crunches if large deposits shift into crypto wrappers backed by short-term government bonds. Furthermore, strict regulation in one jurisdiction, like the EU, incentivizes regulatory arbitrage, pushing risk offshore where supervision is weaker. By formally 'blessing' stablecoins without providing macro containment tools like issuance limits or resolution frameworks, MiCA may inadvertently legitimize and embed systemic fragility, potentially building the conditions for the next financial crisis rather than preventing one.
(Source：CoinDesk)