LONDON — Financial authorities in the United States and the European Union have finalized a landmark mutual recognition framework for fiat-backed stablecoins, establishing unified operational standards for cross-border digital payments. The agreement, announced Tuesday following joint meetings in Basel, provides long-awaited regulatory clarity for banking institutions and digital asset firms operating across transatlantic markets.
Under the new guidelines, compliant stablecoin issuers holding full reserve backing in high-quality liquid assets—such as short-term sovereign debt—can now operate seamlessly across both jurisdictions without duplicating licensing procedures. The policy builds upon the full operationalization of Europe’s Markets in Crypto-Assets (MiCA) framework and recent U.S. federal payment stablecoin legislation, enforcing strict capital reserve requirements, mandatory daily liquidity disclosures, and standardized redemption
