Despite the opposition from the European Central Bank, the European Commission will still ease regulations on foreign stablecoins.

According to Gate News bot, the Financial Times reported on June 25 that the EU is preparing to relax its stance on foreign-issued stablecoins, potentially allowing dollar-backed tokens such as USDC and USDT to circulate freely within the EU.

According to reports, the European Commission will soon issue formal guidelines allowing stablecoins issued outside the EU to enjoy the same treatment as stablecoins registered in Europe.

This move will clear the key regulatory barriers that have so far restricted the entry of dollar-backed stablecoins into the European financial market.

Despite multiple warnings from the European Central Bank that unrestricted access to foreign stablecoins could undermine financial stability, this shift has still occurred.

European Central Bank President Christine Lagarde has previously urged policymakers to strengthen restrictions on stablecoin issuers, citing the risks of capital flight and a decline in monetary sovereignty.

According to the EU’s Markets in Crypto-Assets (MiCA) regulation, stablecoin issuers must currently hold most of their reserves in EU banks and ensure redemption rights denominated in euros.

The proposed changes will allow global issuers to bypass the restrictions on brand Token versions that have been operating under EU supervision.

The U.S. Senate recently passed the GENIUS Act, establishing a national framework for stablecoin regulation, which increases the pressure for other jurisdictions to follow suit.

The Financial Times quoted several people familiar with the matter as saying that the European Commission’s guidelines aim to prevent the EU from becoming a “flyover zone” for digital assets, left behind by faster-developing markets such as the US and Asia.

The European Central Bank has not publicly commented on the upcoming guidance, but sources have told the Financial Times that there is still strong internal opposition. Reports indicate that EU officials are working to reach a compromise that would give national regulators more discretion to assess the risks associated with foreign stablecoins.

Once enacted, the new approach could mark a turning point for the role of dollar-backed stablecoins in Europe, reinforcing the dominance of the dollar in the digital asset market, while indicating the EU’s desire to continue being a competitive hub for crypto innovation.