The European Banking Authority released draft guidelines for stablecoin issuers Wednesday, per a mandate under the recently passed Markets in Crypto-Assets Regulation (MiCA) policy.
In its proposal, the EBA outlines how issuers of stablecoins — which the regulator refers to as asset-reference tokens (ARTs) — and other cryptocurrencies should structure their risk management and recovery plans.
“All issuers should include a de-pegging risk indicator, aimed to keep track of the alignment between the market price of the token and the market value of the referenced asset,” the draft reads.
The regulator stipulated that in response to “adverse scenarios” potentially…
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