ECB Rejects Euro Stablecoin Easing Over Bank Lending Risks at 1.1585

The ECB on May 24 pushed back against proposals to loosen euro stablecoin rules, warning of risks to bank deposits and monetary policy transmission. The warning follows the euro's slide to 1.1585 after the EU moved on May 19 to cut U.S. import duties and hawkish Fed commentary on May 22 lifted the dollar to weekly highs. Markets now price fewer 2025 rate cuts, widening the policy gap with the ECB while dollar stablecoins retain 90% market share.