While non-binding, the recommendation could influence regulators to tighten restrictions on issuers such as Circle and Paxos that operate across multiple regions. The move comes weeks after European Central Bank President Christine Lagarde urged policymakers to close gaps in crypto oversight, highlighting concerns around non-EU stablecoins. A senior official at Italy’s central bank also warned in September that multi-issuance models posed risks to the region’s financial stability. Investor TakeawayA ban on multi-issuance stablecoins could reshape Europe’s crypto market by restricting access to dollar-pegged tokens and putting pressure on issuers to localize operations. Digital Euro on the HorizonAt the same time, the European Central Bank is weighing its own digital currency.