The European Union will relax regulations on dollar-backed stablecoins such as USDT and USDC.

According to the Gate News bot, the Financial Times reports that the EU is preparing to relax its stance on foreign-issued stablecoins, paving the way for USD-backed tokens like USDC and USDT to circulate more freely within the EU. The European Commission is expected to issue formal guidance allowing stablecoins issued outside the EU to be treated equally with those registered within the EU.

This move will mark a significant shift in the classification and regulatory policies of digital assets outside the EU. Until now, EU regulations have posed a barrier to the adoption of USD-pegged stablecoins in the European financial markets. The upcoming guidelines will eliminate this barrier and may expand the role of US stablecoins in European cryptocurrency trading, DeFi, and cross-border payments.

The decision is seen as a strategic move aimed at enhancing the liquidity of digital assets in the EU without compromising regulatory standards. If confirmed, as stablecoins continue to be promoted in the EU region, this decision may help stablecoins integrate more comprehensively into the MiCA (Markets in Crypto-Assets) framework.