As stablecoins edge closer to mainstream adoption, their implications stretch far beyond digital asset markets. They are emerging as potential pillars of a new global payment infrastructure—prompting concerns not only about monetary sovereignty but also about legal liability and consumer protection.
According to the Financial Times, stablecoins are expected to play a pivotal role in the future of cross-border transactions. Their growing use in international commerce could foster a form of “digital dollarisation”, where global e-commerce platforms increasingly settle payments in U.S. dollar-pegged stablecoins. While this might cement the dollar’s global dominance, it also poses systemic risks to local currencies and national monetary control.
In parallel, legal frameworks—especially around issuer liability—are struggling to keep pace with the technology
What Are Stablecoins – And Why Does Liability Matter?
Stablecoins promise 1:1 convertibility into fiat currency, which creates the assumption of reliability and security. But what happens when a stablecoin loses its peg, or when issuers fail to honor redemption rights?
In such cases, liability questions become central:
Who is responsible for losses?
What legal remedies are available to holders?
What regulatory safeguards exist to prevent misuse or misrepresentation?
EU Perspective: MiCA Regulation as a Liability Framework
The European Union has taken a leading role in regulating crypto-assets, with the Markets in Crypto-Assets (MiCA) Regulation fully enforceable since December 2024.
Key provisions:
Issuers of stablecoins (Asset-Referenced Tokens and E-Money Tokens) must be authorized and supervised.
Article 48 MiCA guarantees daily redemption rights at par value for holders of e-money tokens.
Article 15 MiCA introduces civil liability for misleading information in white papers.
Issuers are liable for breaches of contractual and regulatory obligations
U.S. Developments: Fragmented but Evolving Liability Rules
In the U.S., liability rules are still emerging:
The GENIUS Act (2025) proposes a federal licensing regime for stablecoin issuers.
The SEC recently clarified that certain payment stablecoins are not securities, limiting SEC jurisdiction but not eliminating issuer liability.
A report by the Congressional Research Service highlights concerns about the lack of prudential oversight and potential losses for users.
EFRI Recommendations
Europe is ahead of the United States this time—a significant opportunity. With MiCA, the EU has introduced relatively clear liability rules for stablecoins licensed within its jurisdiction. This marks a substantial improvement, as there have been virtually no comprehensive civil liability provisions for payment fraud to date—apart from those related to unauthorized card transactions under the PSD2 framework. Now, everything hinges on the strong enforcement of MiCA’s liability provisions, particularly Articles 15 and 48, the effective strengthening of civil liability protections for users, and enhanced cross-border regulatory coordination to ensure robust oversight and meaningful consumer protection in the rapidly evolving stablecoin landscape
