• Europe's largest asset manager, Amundi, cautions that U.S. stablecoin regulations could disrupt the global payment ecosystem.
  • The warning comes as U.S. lawmakers draft new rules for dollar-pegged stablecoins, while EU officials push back against potential threats to financial sovereignty.
  • With USD-backed stablecoins like Paxos’ USDG expanding in Europe, regulators are scrambling to implement safeguards.

A Growing Regulatory Flashpoint

Amundi, which oversees more than €2 trillion in assets, has joined a chorus of European financial institutions raising alarms over U.S. stablecoin policies. The firm argues that unchecked expansion of dollar-denominated digital currencies could distort payment systems and undermine monetary stability outside the U.S.

This concern has gained urgency as Paxos rolls out its USDG stablecoin in the EU, mirroring trends seen during Facebook’s ill-fated Libra project. "The dominance of USD stablecoins creates structural risks," said an Amundi executive familiar with the matter, speaking on condition of anonymity due to regulatory sensitivities. "We’re seeing a replay of the Libra debates, but with higher stakes."

The Transatlantic Divide

European regulators are pushing back with stricter rules, including the UK’s proposed 1:1 reserve requirements and redemption guarantees. The EU is separately weighing measures to curb the influence of foreign stablecoins, though details remain under discussion.

Meanwhile, U.S. lawmakers are advancing the STABLE Act, which could cement America’s role as the de facto standard-setter for digital currencies. "Without coordination, we risk a fragmented system where the strongest currency dominates," noted a Brussels-based policy advisor.

Market participants suggest the tensions could accelerate Europe’s efforts to develop homegrown alternatives. Amundi’s intervention adds institutional heft to these concerns, though the firm declined to comment on whether it plans to launch competing products.

Correction: An earlier version misstated the timeline for Hong Kong’s stablecoin rules; enforcement begins in August 2025, not 2024.