EU Watchdog Pushes Multi-Issuance Crypto Ban on Crash Fears (1)

The ECB is winning support for a ban on stablecoins issued jointly in the bloc and other jurisdictions, setting the scene for a clash over how operators like Circle Internet Group Inc. and Paxos Inc. manage their activities across borders.

The European Systemic Risk Board, charged with guarding Europe’s financial system, last week passed a recommendation to ban so-called multi-issuance stablecoins, people familiar with the discussions said, asking not to be identified discussing non-public information.

The ESRB guidance, which was approved by a high-powered board of central bank governors and EU officials, is not legally binding. But it will ...