France Pushes for Tighter Stablecoin Rules as EU Faces Dollar Dominance Challenge
France is stepping up its efforts to tighten oversight of stablecoins in the European Union, warning that the rapid growth of dollar-pegged tokens risks undermining the euro’s role in the digital economy.
Summary:
- France is pushing to restrict non-euro stablecoins under EU rules.
- Officials warn dollar-pegged tokens dominate nearly 98% of the market.
- Paris also backs tighter supervision and new reporting rules for crypto holdings.
Officials at the Banque de France have called for stricter limits under the EU’s Markets in Crypto-Assets framework, arguing that current rules fall short in addressing systemic risks tied to foreign-denominated digital currencies.
The push reflects growing unease among European policymakers as stablecoins gain traction in payments and trading, often without direct alignment to the euro.
Dollar Dominance Draws Scrutiny
At the center of the debate is the outsized role of US dollar-backed stablecoins.
Denis Beau, First Deputy Governor of the Bank of France, said existing MiCA provisions only “partially address” the risks posed by these assets. He pointed to the fact that dollar-pegged tokens account for roughly 98% of the global stablecoin market, raising concerns about monetary sovereignty in a digital financial system increasingly shaped outside Europe.
French authorities are now advocating for tighter restrictions on the use of non-euro stablecoins in payments across the bloc. The concern is not just market share, but influence – particularly if digital payments infrastructure becomes dependent on foreign currency-linked instruments.
The proposal signals a shift from simply regulating crypto markets to actively shaping their currency composition.
Closing Regulatory Gaps
One key issue is “multi-issuance,” where firms issue the same stablecoin through multiple legal entities across jurisdictions. This setup allows companies to meet regulatory requirements in one region while maintaining less stringent conditions elsewhere.
Officials argue that such structures enable regulatory arbitrage and weaken the effectiveness of MiCA. Paris is pushing for either a ban or tighter oversight of these arrangements to ensure consistent risk controls.
At the same time, France is aligning with other EU members, including Italy and Austria, in advocating for stronger centralized supervision.
Toward Centralized Oversight
The debate over enforcement is increasingly focused on the role of the European Securities and Markets Authority.
French regulators, including the Autorité des marchés financiers, have warned that crypto firms are exploiting differences between national regimes. By securing licenses in jurisdictions with lighter requirements, companies can “passport” services across the EU under MiCA rules.
READ MORE: Japan Reclassifies Crypto as Financial Instruments, Opening Door to ETFs and Institutional Capital
Paris wants ESMA to take direct supervisory control over major crypto firms, replacing the current system of national oversight.
The goal is to create a uniform regulatory standard across the bloc and reduce the risk of market fragmentation.
Such a shift would mark a significant step toward deeper financial integration within the EU’s digital asset sector.
Expanding Oversight to Private Holdings
Alongside its push at the EU level, France is tightening domestic rules.
The French National Assembly recently adopted a provision requiring taxpayers to report self-hosted crypto wallets exceeding €5,000 in value. The measure forms part of a broader anti-fraud initiative aimed at improving transparency around private digital asset holdings.
Authorities say the rule will help combat tax evasion and money laundering. However, the proposal has drawn criticism from industry participants and some lawmakers, who question its enforceability and raise concerns about data privacy.
Despite the pushback, the move signals a broader trend toward extending oversight beyond centralized platforms to individual users.
Deadlines Approach
The regulatory push comes as key MiCA deadlines near. By June 30, 2026, all new stablecoin offerings must comply fully with the framework. A day later, the transition period for existing French digital asset service providers ends, requiring them to obtain full authorization as crypto asset service providers.
Further signals may come at Paris Blockchain Week, where Emmanuel Macron is expected to address the country’s digital asset strategy.
A Strategic Shift
France’s position reflects a broader recalibration in Europe’s approach to digital assets.
Rather than focusing solely on innovation, policymakers are placing increasing emphasis on control, currency sovereignty, and systemic risk. Stablecoins, once viewed primarily as tools for market efficiency, are now being assessed through the lens of monetary policy.
For the EU, the challenge is balancing openness to digital finance with the need to preserve the euro’s role in a rapidly evolving system.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
