ECB and EU central banks seek changes to MiCA stablecoin reserve rules

The European Central Bank and other EU central banks are pushing for changes to MiCA’s stablecoin reserve rules, arguing that the current bankdeposit requirements could create liquidity pressure for lenders. In a response to the European Commission’s review of the Markets in CryptoAssets Regulation, the European System of Central Banks said the rule requiring at least 30% of reserves, or 60% for significant stablecoins, to be held in bank deposits should be replaced with liquidity thresholds. The central banks proposed that reserve assets should instead meet minimum liquidity standards based on how quickly they mature, with possible use of overnight repos and shortterm sovereign bonds. They said the existing framework creates a direct link between stablecoin issuers and banks, which could become risky if investors rush to redeem tokens. The ECB and national central banks also said MiCA enforcement still faces challenges, noting that noncompliant crypto firms can continue serving EU customers. The debate comes after stablecoin industry figures, including Tether CEO Paulo Ardoino, previously raised similar concerns about the banking impact of the rules.