1 INTRODUCTION 1

2 STABLECOINS: DESIGN AND RISKS 2

2.1 The design of stablecoins 2

2.2 Understanding multi-country issuance 3

2.3 Stablecoins are not safe assets 5

2.4 Stablecoins as unsafe collateral 5

3 STABLECOIN REDEMPTION: THE LEGAL REGIME 6

3.1 MiCAR vs GENIUS Act: Redemption rights and asset safeguards 6

3.2 GENIUS Act implementation and the OCC proposal 8

4 HOW TO CONTAIN MCI REDEMPTION ARBITRAGE 10

4.1 The current EU debate on MCI regulation 10

4.2 Towards functional equivalence: Contingent measures 12

5 CONCLUSION 14