The European Central Bank (ECB) is calling for amendments to the European Union's Markets in Crypto Assets legislation (MiCA) due to concerns that U.S. support for cryptocurrency might jeopardize the EU's financial stability. This demand for a re-evaluation of MiCA, which recently came into effect, has led to a disagreement with the European Commission. The ECB highlighted that pending U.S. legislation, such as the Stablecoin Transparency and Accountability Act, could enhance the influence of dollar-backed stablecoins, potentially increasing their market value significantly. At an April 14 meeting with EU officials, the ECB emphasized the need for a serious rethink of MiCA, asserting that risks from global stablecoins are understated. However, the European Commission pushed back, stating that these risks are manageable under existing laws and dismissed the ECB's stance as unpopular among many officials. Both the ECB and the Commission did not respond to requests for additional comments on this developing situation.

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