Stablecoin News: 12-Bank Consortium to Create MiCA-Compliant Stablecoin

Key Insights:

• European banks are coming together to roll out a Euro-backed stablecoin.
• A stablecoin stalemate could further delay the CLARITY Act.
• BIS warns that stablecoins may disrupt monetary policy and the banking system.

The European banking industry just jumped on top of stablecoin news headlines. European banks previously attempted to go the CBDC route, but that failed spectacularly. Now, they have pivoted in favor of stablecoins.

According to the latest stablecoin news, a consortium of 12 European banks is collaborating to roll out a Euro-backed stablecoin. The stablecoin will be MiCA-compliant. Moreover, the consortium reportedly plans to roll it out in the second half of 2026.

Stablecoin news – European banks plan to roll out new Euro-backed stablecoin | Source: Coin Bureau

The Euro-backed stablecoin news highlights Europe’s efforts at playing catch-up. Dollar-backed stablecoins have already secured a solid lead, but having a euro-backed stablecoin will allow European banks to protect the value of the Euro.

Moreover, the upcoming European stablecoin will reportedly be used to facilitate investment in tokenized assets, treasuries, and settlements. It represents Europe’s latest efforts at bridging the gap between WEB2 and WEB3, while also embracing the shift towards tokenization.

Stablecoin News: CLARITY ACT May Face More Delays due to Stablecoin Stalemate

Across the pond, matters related to stablecoins may cause further delays to the CLARITY Act. According to the latest stablecoin news from the US, lawmakers are still pushing for a stablecoin compromise.

The CLARITY Act has faced months of delays so far, after banks lobbied against stablecoin yields. The official narrative was that stablecoin yields could undercut the banking industry.

This is why banks have been pushing for more stringent regulations against crypto firms, and especially stablecoin issuers. Further pushback may delay the CLARITY Act further.

Stablecoin news – CLARITY Act could face more delay | source: BSC News

Another delay could eliminate the possibility of passing the CLARITY Act before the end of April. This is contrary to the recent push for lawmakers to expedite the legislation.

Further delays suggest the window for passing the CLARITY Act will likely move to May. These delays have occurred despite calls to expedite the legislation. However, the stalemate between banks and crypto companies has been the primary reason for the current delay.

BIS Issues Warning About Stablecoins Impact on Global Finance

The central bank of central banks has also contributed to the anti-stablecoin sentiment among banks. The Bank for International Settlements (BIS) reportedly warned that stablecoins could become a disruptive force in global finance.

BIS Issues Warning about Stablecoins | Source: DL NEWS

The warning from the BIS highlights how aggressively banks are pushing against stablecoins. This could lead to some compromises in the CLARITY Act.

The BIS’s warning suggests that the traditional finance system is aware of the level of threat and disruption that stablecoins pose. However, curbing stablecoins could come in the form of banning yields. Coinbase CEO Brian Armstrong previously warned of such an outcome.

In summary, the current resistance to the CLARITY Act primarily stems from the banking industry. Banks see rapid stablecoin adoption as a long-term threat to their operations.

However, this stall could allow banks to force regulators into implementing restrictions that will favor them. Banks also understand that they cannot maintain their dominance for long without embracing the same technology.

This is why most financial institutions, especially banks, are embracing stablecoins. Perhaps the banks are stalling to buy time for transitioning to a stablecoin-driven system. It will be interesting to see how banks and regulators will navigate the situation.

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