Global crypto oversight tightens as EU eyes unified rules and IMF sounds stablecoin alarm
Regulators around the world are sharpening their focus on digital assets, raising fresh questions about the future of crypto oversight, stablecoin stability, and the responsibilities of major online platforms.
In Europe, officials are weighing stricter, more centralized supervision of crypto markets. The IMF and South Africa’s central bank have renewed their warnings about the risks associated with stablecoins. Meanwhile, in the United States, regulators have opened the door for spot crypto products to trade on futures markets for the first time.
EU fines X under tougher digital rules
European regulators have fined social media platform X €120 million (about $140 million) for failing to comply with the Digital Services Act (DSA). After a two-year investigation, officials concluded that the company was not doing enough to address illegal or harmful content.
Regulators also criticized the platform’s blue check system, saying the verification badges were misleading and made it harder for users to judge the authenticity of accounts.
The penalty adds to Europe’s wider crackdown on Big Tech companies. TikTok, for instance, avoided similar fines by making concessions ahead of regulatory deadlines. The action against X has already stirred political tensions, with U.S. Vice President JD Vance accusing the EU of unfairly targeting American firms.
Importantly, the DSA doesn’t just apply to social media. Large crypto platforms, DeFi interfaces, and NFT marketplaces will also fall under its scope if they reach significant scale, influencing how these platforms manage ads, user-generated material, and financial instruments.
EU banks launch Euro stablecoin as regulators consider ESMA oversight
Ten European banks—including BNP Paribas, ING, Danske Bank, and Raiffeisen Bank—have joined forces to create a new euro-backed stablecoin, set to launch by late 2026. The initiative is incorporated under the name Qivalis, headquartered in Amsterdam.
Qivalis CEO Jan-Oliver Sell said the project aims to offer European consumers and businesses a secure way to interact with digital payments and on-chain financial markets using their own currency.
This development comes just as the European Commission proposed expanding the authority of the European Securities and Markets Authority (ESMA). The plan would shift oversight of major financial infrastructures—including all Crypto-Asset Service Providers (CASPs)—to ESMA.
France, Italy, and Austria have pushed for this change, arguing that uneven enforcement of the EU’s MiCA (Markets in Crypto-Assets) framework is creating regulatory gaps across member states.
CFTC approves spot crypto trading in U.S. futures markets
In a major policy shift, the U.S. Commodity Futures Trading Commission has approved spot cryptocurrency products to trade directly on futures markets.
Acting Chair Caroline Pham said the move brings crypto “onshore to safe U.S. markets” and follows recommendations from the White House Working Group on Digital Asset Markets as well as ongoing collaboration with the Securities and Exchange Commission (SEC).
The approval represents a key milestone in the SEC-CFTC “Crypto Sprint,” a joint initiative aimed at harmonizing industry guidance. Pham, who has served as acting chair since the start of the year, is expected to step down once the Trump administration’s nominee, Michael Selig, is confirmed.
South Africa flags crypto and stablecoin risks
South Africa’s Reserve Bank has issued a fresh warning about the rising risks associated with stablecoins and crypto, citing the absence of comprehensive regulatory frameworks.
Herco Steyn, the bank’s lead macroprudential specialist, cautioned that crypto’s global reach makes it an ideal tool for bypassing financial regulations. South Africa ranks second in Africa for crypto transaction volume, making oversight increasingly important.
Steyn previously argued that regulators may struggle to impose prudential requirements on foreign stablecoin issuers, which could expose the broader financial system to spillover risk.
To address these concerns, South Africa’s central bank and National Treasury are developing new rules targeting cross-border crypto flows, including updates to exchange control laws.
IMF warns stablecoins could disrupt fragile economies
The International Monetary Fund has issued a new report outlining several risks associated with stablecoins, particularly in emerging markets:
- Volatility and risk of sudden mass withdrawals
- Disruption of traditional banking systems
- Strong links to broader financial markets
- Risk of “currency substitution,” particularly through foreign-denominated stablecoins
The IMF emphasized that foreign-currency stablecoins used across borders could undermine monetary sovereignty—especially when paired with unhosted wallets. The organization also noted that many stablecoin issuers do not offer clear redemption rights, creating uncertainty in the event of insolvency.
In crisis scenarios, this could lead to destabilizing “first-mover” advantages, where early sellers can exit at better prices while late holders face steep losses.
Despite the warnings, the IMF acknowledged stablecoins’ potential benefits, including faster global payments, reduced counterparty risk via smart contracts, and improved access to digital financial services in underserved regions.
