Stablecoins: the US vs Europe Regulatory Battle

Stablecoins: the US vs Europe regulatory battle

Overview

Who is winning the stablecoin battle, Washington or Brussels? In this MERGE Madrid panel, Mastercard, TRM Labs and a Latin American exchange debate the rise of stablecoins, the opposing approaches of the Genius Act and MiCA, the role of the digital euro, dollar geopolitics, on-chain crime prevention and the social impact of stablecoins in Latin America.

What you'll learn

• Genius Act vs MiCA: innovation and the dollar vs protection and stability
• The digital euro: why it raises questions and why it would not use blockchain for now
• Dollar geopolitics: extraterritoriality, sanctions and sovereignty
• Banks and big tech: private stablecoins, deposits and interest
• On-chain crime: why it attracts illicit actors and how it is tackled
• Impact in LatAm: remittances, inflation and a social use case

Session summary

US vs Europe: the panel agrees there is no absolute “right side,” just different approaches. The US bets on innovation and on reinforcing the dollar via stablecoins (with an interest also in demand for public debt), while Europe prioritizes citizen protection and financial stability.

The digital euro: it debates that a retail digital euro raises questions (little demand, possible holding limits and, for now, no blockchain), though it would make sense for sovereignty; several panelists believe CBDCs and stablecoins will coexist on different tracks.

Geopolitics and sovereignty: it notes that nearly all stablecoins are pegged to the dollar and that the extraterritoriality of US rules could allow freezing funds beyond its borders; the role of hubs like Dubai and China's closed ecosystem are mentioned.

Banks, big tech and crime: Mastercard explains how it integrates stablecoins (crypto cards, settlement in stablecoins and a multi-token network); TRM Labs addresses why stablecoins attract illicit actors and how it works with regulators and law enforcement to freeze funds.

Social impact in LatAm: the Latin American exchange highlights stablecoins' value for cheaper remittances (versus fees of up to 15% through traditional channels, according to the talk) and protection from inflation, alongside the importance of KYC and user education.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with Mastercard, TRM Labs and a Latin American exchange on the stablecoin battle.

FAQs

Who wins the stablecoin battle, the US or Europe?
According to the panel, there is no clear winner: they are different approaches (innovation and the dollar vs protection and stability) that will likely coexist.

Why are nearly all stablecoins in dollars?
According to the talk, due to a historical advantage: they emerged first in dollars and have accumulated years of volume; euro-pegged ones are still a minority.

Why are stablecoins used in Latin America?
According to the talk, mainly for cheaper remittances and to protect against inflation and unstable local currencies.

Is this investment advice?
No. This content is informational and summarizes what was presented in the panel; it does not constitute investment or legal advice. Consult a professional for your specific situation.