The European Banking Authority (EBA) has released comprehensive guidelines for recovery plans for issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs) under the Markets in Crypto-Assets (MiCA) regulation.

ARTs are digital tokens backed by assets like commodities, real estate, or a diversified basket of assets, while EMTs are stablecoins pegged to fiat currencies to maintain a stable value for payments.

The guidelines ensure that issuers have robust recovery plans to comply with regulatory requirements if they fail to meet asset reserve standards. These plans must include a summary of key elements, governance details, recovery options, and a communication strategy, along with indicators to monitor the issuer’s financial health and operational stability, including a critical de-pegging risk indicator.

The guidelines follow the principle of proportionality, tailoring requirements to the issuer’s size, complexity, and business model. For tokens issued by multiple entities, the guidelines emphasize coordination to ensure consistent recovery plans and fair treatment of token holders.

Transparency is a key focus, requiring issuers to develop communication strategies to inform stakeholders about recovery options and steps taken to restore compliance. Issuers must also manage potential adverse market reactions and ensure clear internal decision-making processes and timely communication with authorities.

The EBA developed these guidelines after a public consultation, incorporating feedback from industry stakeholders. The final guidelines aim to balance regulatory oversight with operational flexibility to strengthen the EU crypto-asset market's resilience. Issuers must comply with these guidelines and notify the EBA of their compliance status. The guidelines will take effect two months after being published on the EBA website, marking a significant step toward ensuring the stability and reliability of the EU's rapidly growing crypto industry.