Autor Cointelegraph By Helen Partz

European stablecoin issuers are making the case for regulated US dollar tokens, arguing that Europe’s push to strengthen the euro does not eliminate businesses’ need for dollar liquidity.AllUnity, a German stablecoin issuer, launched its US dollar-pegged stablecoin USDAU on Wednesday, expanding its MiCA-regulated lineup beyond European currencies.“In global trade and FX markets, the US dollar is the glue,” AllUnity CEO Alexander Höptner told Cointelegraph, adding: “For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough.”European issuers’ push into dollar stablecoins comes as the EU reviews its MiCA framework and the ECB continues to raise concerns about stablecoins reinforcing the dollar’s global dominance.Europe cannot “wish away” dollar demandStable Mint CEO James Bennett said demand for dollar stablecoins in Europe reflects practical business needs rather than something policymakers can simply steer toward the euro.“Dollar stablecoins are where the demand is, and Europe can’t wish that away,” Bennett told Cointelegraph. “What Europe can control is who issues them to European users, and under which rules.”Stable Mint’s USDSM stablecoin has moved more than $380 million onchain across 3.8 million transfers and is held by more than 2,600 addresses, according to figures provided by the company as of Wednesday.Related: Circle urges EU to revise stablecoin reserve rules in MiCA reviewFiat Republic CEO Adam Bialy similarly pointed to demand from crypto platforms and stablecoin companies seeking round-the-clock dollar settlement.“The demand we are seeing is driven by practical needs, not speculation,” Bialy told Cointelegraph, adding that a regulated dollar token can reduce friction in cross-border settlement between Europe, the UK and North America.Not “euro versus dollar”Societe Generale-FORGE (SG-Forge), the digital asset subsidiary of French banking group Societe Generale, said the goal should be a diversified market rather than opposition to dollar stablecoins.“We believe the objective is not to oppose dollar stablecoins, but to foster a diversified and resilient ecosystem where users can access both euro and dollar-denominated digital cash solutions within a robust regulatory framework,” a spokesperson for the company told Cointelegraph.Related: ECB launches Pontes to settle tokenized assets without stablecoinsSG-FORGE said its USD CoinVertible (USDCV), launched in 2025, has attracted interest for trading, settlement, collateral management and treasury operations.Despite growing interest, Europe-issued dollar stablecoins remain tiny compared with Tether USDt (USDT) and Circle’s USDC. CoinGecko puts USDSM and USDCV at about $13 million each, versus $184 billion for USDT and $74 billion for USDC.Market capitalization of USDCV and USDSM versus USDT and USDC. Source: CoinGeckoAllUnity’s Höptner framed the market similarly, saying the opportunity is “not ‘US versus Europe’” but building interoperable financial infrastructure connecting dollar liquidity with European banks and businesses.Magazine: MiCA cracks down on USDT in Europe… but no one else cares

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European regulators are reportedly scrutinizing Binance’s use of a legal exemption to continue serving customers in the European Union without authorization under the bloc’s crypto rules.The European Securities and Markets Authority (ESMA) and regulators in France, Germany and Greece are examining Binance’s use of reverse solicitation under the Markets in Crypto-Assets Regulation (MiCA), the Financial Times reported on Thursday.Binance withdrew its Greek MiCA application in June and said it would seek authorization in another EU member state.Binance told Cointelegraph on Sept. 18 that it continues pursuing MiCA authorization and remains committed to operating in Europe on a long-term compliant basis.Reverse solicitation under scrutinyBinance is relying on reverse solicitation to continue serving some EU customers, the report said, citing a person familiar with the matter.The exemption allows non-EU crypto asset service providers (CASPs) to serve customers who approach them entirely on their own initiative, but ESMA’s guidelines stress that companies cannot use it to circumvent MiCA requirements.Related: Binance disappears from Google Play in certain EU countriesAhead of the end of MiCA’s transitional period on July 1, Binance told Cointelegraph that EU access would depend partly on a user’s jurisdiction, account status and “servicing entity.” Some EU traders are now being served through Binance’s Abu Dhabi-regulated entity, according to the FT.Binance did not confirm whether it was in talks with EU regulators, telling Cointelegraph that it “complies with applicable regulatory requirements.”ESMA pushes for stronger enforcement powersESMA on Wednesday called for stronger powers over non-EU companies that solicit European investors without MiCA authorization in its response to the European Commission’s consultation on reviewing the regulation.ESMA said its proposals would support faster, more consistent supervisory action across the EU and reduce opportunities for companies to exploit regulatory differences.Related: EU banking watchdog calls for crypto lending rules under MiCAThe push follows ESMA Chair Verena Ross saying Monday that the regulator’s MiCA focus had shifted “from rulemaking towards supervision and convergence.”Binance absent from ESMA’s non-compliant listESMA’s register of non-compliant crypto providers grew from 164 entries on July 16 to 173 in its Sept. 30 update.Binance does not appear on the latest register, which MiCA describes as “non-exhaustive” and which ESMA updates based on information from national authorities and other sources.Germany’s Federal Financial Supervisory Authority (BaFin) declined to provide further information, citing legal confidentiality obligations. ESMA and the French and Greek watchdogs had not responded by publication.Magazine: MiCA is coming for DeFi vaults, but regulation will be difficult