The European Commission has stated that existing European cryptocurrency regulations are adequate to manage the risks associated with stablecoins, despite calls from the European Central Bank for additional safeguards. The Commission believes no major regulatory adjustments are necessary, as the Markets in Crypto-Assets Directive (MiCA) already provides a comprehensive framework. This comes amid concerns over the 'multi-location' stablecoin model, where tokens issued within the EU might be treated as interchangeable with those outside the bloc. Six cryptocurrency industry associations, including Circle, have urged the European Commission to clarify the multi-issuance model under MiCA. The European Systemic Risk Board has highlighted potential risks in this structure, while the European Central Bank fears it could lead to a run on reserves. Stablecoin issuers, however, assert they have adequate reserves to meet redemption demands.