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

ARTs are digital tokens backed by assets like commodities or real estate, while EMTs are stablecoins pegged to fiat currencies for payment stability. The guidelines aim to ensure compliance with regulatory standards by requiring robust recovery plans in case issuers fail to meet asset reserve requirements.

Key aspects of the guidelines include developing recovery plans with governance details, recovery options, and communication strategies. They also mandate monitoring frameworks to assess financial health and operational stability, including indicators for critical risks like de-pegging from asset values.

The guidelines emphasize proportionality, tailoring requirements to the issuer's size and complexity. They stress coordination among multiple issuers to align recovery indicators and ensure fair treatment of token holders.

Transparency is a focal point, requiring issuers to communicate recovery plan implementation to stakeholders, manage market reactions, and maintain clear decision-making processes with competent authorities.

Following a public consultation, the EBA finalized these guidelines to balance regulatory oversight with operational flexibility. Issuers must comply and notify the EBA of their status within two months of publication on the EBA website, aiming to enhance market resilience and stability in the EU's crypto sector.