The European Banking Authority (EBA) has stated that there is no immediate need to revise existing EU regulations concerning stablecoins, despite warnings from the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) about potential financial stability threats. An EBA spokesperson highlighted that the risk of large-scale redemption requests is contingent on the stablecoin issuer's operating model and business scale. The ECB and ESRB have urged Brussels to impose stricter controls on stablecoin operations, particularly against the practice of 'multi-location issuance,' where tokens issued within the EU are mixed with those in other regions. The ESRB cautioned that sudden redemptions by non-EU investors could lead to significant financial losses and liquidity crises, with concerns that the US might restrict dollar reserve flows to Europe, complicating redemption processes for issuers.