Christine Lagarde urges Europe to tighten rules on foreign stablecoins

Christine Lagarde urges Europe to tighten rules on foreign stablecoins

Christine Lagarde, president of the European Central Bank, has urged European lawmakers to strengthen regulation of stablecoins issued outside the European Union. She believes that only issuers with guarantees equivalent to those required within the EU should be allowed to operate in the European market. For her, this requirement is essential to avoid regulatory arbitrage and preserve financial stability.

Lagarde warns of a potential crisis scenario: in the event of panic, stablecoin holders could rush to redeem their tokens in jurisdictions perceived as safer. In such a situation, reserves available in Europe could prove insufficient to meet a wave of redemptions, directly threatening the eurozone’s stability.

This stance contrasts with that of the European Commission, which is considering a more flexible approach allowing foreign issuers easier access to the European market. According to the ECB, such a choice would expose European banks and financial institutions to greater risks.

Beyond protecting the internal market, Lagarde stresses the need for international cooperation. She wants MiCA, the European regulatory framework, to become a global benchmark to limit distortions created by more lenient jurisdictions. In her view, only firm and coordinated regulation can ensure that stablecoins, central tools of digital finance, do not become a systemic weakness for the European economy.

Hyperliquid prepares to launch its own stablecoin usdh

Hyperliquid, the decentralized exchange specialized in perpetual contracts, is preparing to launch its native stablecoin called USDH. The goal is clear: reduce its dependence on external stablecoins like USDC and capture part of the revenue generated by reserves, strengthening the autonomy and resilience of its ecosystem.

The launch of USDH will not be imposed unilaterally. It will go through an on-chain vote, allowing network validators to decide on issuance and select the team in charge of development. This participatory governance reflects a desire to combine innovation with community control.

At the same time, Hyperliquid is preparing several major updates. Fees on certain spot pairs are expected to drop by 80%, while a permissionless listing system will be tested first on testnet. The platform also wants to strengthen the role of staking by introducing penalty mechanisms to further hold validators accountable.

The potential impact is significant. If a large share of the volumes currently processed in USDC shift to USDH, Hyperliquid could generate hundreds of millions of dollars in additional revenue each year, benefiting both its HYPE token and the broader ecosystem.

The success of USDH will depend, however, on user trust and the platform’s ability to prove the robustness and security of this stablecoin. For Hyperliquid, this project represents far more than just a product: it is a strategic step toward establishing itself as a key player in decentralized finance.

Justin Sun frozen out of wlfi

Justin Sun, founder of Tron and key investor alongside the Trump family in the World Liberty Financial (WLFI) protocol, has faced an unexpected situation: his WLFI tokens were suddenly frozen by the platform. The freeze reportedly affects around 595 million unlocked tokens, equivalent to about $100 million. The measure follows “suspicious” movements detected on the blockchain, including a transfer of roughly $9 million to an exchange.

Sun disputes this decision in a public statement: he claims his transactions were merely tests of an exchange deposit with small amounts and an effort to diversify his addresses, without any intent to sell or impact the market. He described the freeze of his funds as “unreasonable” and urged WLFI officials to unlock his assets, stressing that token immutability is a fundamental principle of blockchain.

The freeze comes at a particularly sensitive time. Sun had invested heavily in the project and was considered a central figure in its launch. The timing—just after the token’s public listing—adds to tensions between WLFI’s broad ambitions and the transparency investors expect.

The crypto community’s reaction has been mixed. Some denounce it as an infringement of investor rights, while others question the project’s governance practices. WLFI justified its move as a necessary response to activity deemed risky or malicious, without directly naming Sun or clarifying the criteria applied.