Key Takeaways
- He argued would ensure that crypto regulations are applied evenly across the 27-member bloc and help prevent gaps that allow firms to exploit differing national standards.
- The French central bank has also pushed for changes to the MiCA framework, which allows companies licensed in one member state to operate throughout the EU under a “passporting” system.
France is pressing the European Union to give its top markets regulator direct control over major crypto firms, warning that fragmented national oversight threatens the bloc’s financial integrity.
Speaking in Paris, Bank of France Governor François Villeroy de Galhau said the European Securities and Markets Authority (ESMA) should take charge of supervising large digital asset companies.
The move, he argued, would ensure that crypto regulations are applied evenly across the 27-member bloc and help prevent gaps that allow firms to exploit differing national standards.
The French central bank has also pushed for changes to the Markets in Crypto-Assets (MiCA) framework, which allows companies licensed in one member state to operate throughout the EU under a “passporting” system. Critics say this approach leaves too much discretion to individual regulators, undermining oversight of fast-growing cross-border players.
At the heart of the debate is how stablecoins are issued and managed in Europe. Villeroy argued that MiCA’s current allowance for “multi-issuance” — where a token like USD Coin (USDC) can exist inside and outside the EU with separate reserves — creates instability and increases dependence on foreign currencies such as the U.S. dollar.
“The framework needs stricter rules on multi-issuance to minimize arbitrage risks in times of market stress,” he said.
France’s position aligns with concerns raised by the Bank of Italy and the European Systemic Risk Board, which have called for tighter safeguards around stablecoin reserves. The European Central Bank, too, is backing limits on tokens issued across multiple jurisdictions to maintain monetary control.
Circle, the issuer of USDC, was granted an electronic money license in France last year and operates under MiCA’s model.
Trade associations, including Blockchain for Europe, the Electronic Money Association, and the Digital Euro Association recently warned EU policymakers that altering MiCA’s current setup could backfire.
In a joint letter, they argued that reopening the rules on stablecoin issuance “risks Europe falling behind” global competitors, just as the region’s regulatory clarity begins to attract more crypto businesses.
