Bitgo CEO Warns Europe’s MiCA Rules Could Trigger a Massive Stablecoin Crisis
The post Bitgo CEO Warns Europe’s MiCA Rules Could Trigger a Massive Stablecoin Crisis appeared on BitcoinEthereumNews.com. Key Takeaways Mike Belshe warns MiCA limits insurance to €100K, creating system-wide risks for European stablecoins. Recalling how 1 SVB failure depegged USDC in 2023, Belshe warns the banking sector can crash crypto. Bitgo’s CEO demands better rules to protect billion-euro stablecoin reserves from bank collapses. Bitgo CEO States MiCA Brings Systemic Risks to Stablecoin Issuers Mike Belshe, CEO of Bitgo, one of the largest custody providers in the crypto industry, believes that current cryptocurrency regulation in Europe might contribute to a potential stablecoin debacle. On social media, Belshe explained that the Markets in Crypto Assets (MiCA) regulation exposes the stablecoin ecosystem in Europe to systemic risks, forcing stablecoin issuers to hold reserve balances in traditional banks that follow fractional reserve standards. “That creates a direct link betwe