Global regulators are increasing their focus on crypto markets, with stablecoins at the center of the conversation. The IMF and South Africa’s central bank continue to warn about the risks linked to stablecoins. At the same time, the United States has allowed spot crypto products to trade on futures markets, marking another major shift.
EU tightens oversight of tech and digital assets
European regulators fined platform X €120 million for failing to comply with the Digital Services Act. The investigation concluded that X did not take sufficient action to remove harmful or illegal content. Regulators also argued that blue check marks on the platform were misleading and made it harder for users to assess whether an account was authentic.
This fine forms part of a broader crackdown on major technology companies. TikTok recently avoided a penalty after agreeing to make changes. These actions have sparked tension with the United States, as Vice President JD Vance criticized the EU for “attacking” American companies.
The Digital Services Act may also affect large crypto exchanges, DeFi interfaces and NFT marketplaces. If these platforms grow significantly, they will face stricter rules on advertising, user content and the handling of financial instruments.
European banks collaborate on new euro-backed stablecoin
Ten major European banks plan to launch a euro-backed stablecoin by late 2026. The new company, Qivalis, will be based in Amsterdam and includes major players such as BNP Paribas, Danske Bank, ING and Raiffeisen Bank International.
Qivalis CEO Jan-Oliver Sell said the stablecoin will support “convenience and autonomy” in the digital economy. He also highlighted new possibilities for European businesses and consumers to use on-chain payments in their own currency.
The announcement came shortly before the European Commission proposed expanding the authority of the European Securities and Markets Authority (ESMA). Under the proposal, ESMA would oversee major crypto service providers and key market infrastructures. France, Italy and Austria have supported this change, citing uneven enforcement of MiCA rules across the EU.
U.S. allows spot crypto products on futures markets
In the U.S., the Commodity Futures Trading Commission approved spot crypto products for trading on futures markets. Acting Chair Caroline Pham said the move brings these assets into regulated American markets. She noted that the decision followed collaboration with the Securities and Exchange Commission and recommendations from the White House.
Earlier this year, the CFTC and SEC also launched the “Crypto Sprint” initiative to jointly study best practices for digital assets.
South Africa highlights risks in stablecoin adoption
South Africa’s central bank warned about significant risks linked to cryptocurrencies and stablecoins. The bank pointed to the lack of a complete regulatory framework and the global nature of crypto transactions, which could enable individuals to bypass financial rules.
Herco Steyn, the bank’s macroprudential specialist, said the core problem is the absence of a regulatory system that can reliably oversee stablecoin issuers, whether domestic or foreign. He noted that instability in the crypto ecosystem could easily spill into the traditional financial system.
To respond to these concerns, the government is developing rules to monitor cross-border crypto transfers and revise exchange laws to ensure stronger oversight.
IMF warns that stablecoins could impact financial stability
The IMF published a report outlining several risks associated with stablecoins. These include price volatility, the possibility of runs, and the potential to weaken traditional banks. The report also warned that foreign currency-denominated stablecoins might threaten monetary sovereignty, especially when used through unhosted wallets.
The IMF highlighted another major issue: many stablecoin issuers do not guarantee redemption rights for holders. In the event of insolvency, this uncertainty could accelerate investor runs and create first-mover advantages, increasing market instability.
Despite the warnings, the IMF acknowledged that stablecoins can offer benefits. They can enable faster cross-border payments, support digital transactions in remote areas and reduce counterparty risk when used with smart contracts.
