EU deposit insurance (up to €100,000) may not absorb stress from large stablecoin reserve accounts, unlike the full protection offered by U.S. regulators.
What to know : Europe lacks crisis tools used by the U.S. to contain crypto-bank shocks, raising concerns about its ability to handle future financial turmoil. EU deposit insurance (up to €100,000) may not absorb stress from large stablecoin reserve accounts, unlike the full protection offered by U.S. regulators. MiCA forces stablecoin providers to align with banks, but without extended deposit insurance, creating a "double weakness" in the European financial system.
