ECB President reiterates calls for 'MiCA II' in response to FTX collapse

In June, Christine Lagarde said that a possible MiCA II framework "should regulate crypto-asset staking and lending activities, which are clearly increasing. ”

Christine Lagarde, President of the European Central Bank, or ECB, has once again called crypto regulation and supervision an “absolute necessity” for the EU in the wake of the exchange’s collapse of crypto FTX.

In a November 28 hearing of the European Parliament's Economic and Monetary Affairs Committee, Lagarde cited Facebook's Libra as an example of ECB involvement that was "useful in preventing certain players" to engage with crypto companies. However, she said the situation with FTX – involved in crypto assets as opposed to stablecoins – was more about the "stability and reliability" of the exchange and that the ECB needed to step in as a global regulator to respond to the situation. people's growing interest in digital assets.

“At least Europe [on the road to crypto regulation] is leading the pack,” the ECB President said. "But as I said before, it's a step in the right direction. It's not that - there will have to be a MiCA II, which more broadly embraces what it aims to regulate and to supervise, and it is really necessary."

Introductory statement by President Christine @Lagarde at the hearing of the European Parliament's Committee on Economic and Monetary Affairs https://t.co/GKnkOJHh9p

The Crypto Asset Markets Bill, or MiCA, is awaiting final approval after legal and linguistic checks by EU lawmakers. The European Parliament's Economics Committee accepted the MiCA framework in October following trilogue negotiations between the Council of the EU, the European Commission and the European Parliament. Many expect the policy to take effect from 2024.

Lagarde referred to MiCA II - probably an extra step...