The European Central bankThe institution that sets monetary policy for a country or currency area, including interest-rate decisions that can move currencies.Read More and the EU's 27 national central banks opposed MiCA's requirement that major StablecoinStablecoin refers to s are blockchain-based digital currencies pegged to the value of an underlying asset. The term belongs in Level 7 because it helps connect macro conditions,...Read More issuers hold 60% of reserves as bank deposits. In a consultation response, the European System of Central Banks argued that the rule could expose lenders to volatile, less-sticky funding. It recommended replacing the deposit floor with a requirement that a minimum share of reserves mature within one to five working days. The group also warned of material enforcement challenges as non-compliant crypto firms continue serving EU customers.
The European Central Bank and EU national central banks are seeking changes to MiCA’s stablecoin reserve rules, proposing LiquidityIn price-action language, liquidity is the cluster of orders and stops around obvious highs, lows, and equal levels. It can attract price before the next move.Read More-based requirements instead of fixed bank-deposit minimums. They warn that large, sudden withdrawals by stablecoin issuers could strain banks and increase financial stability risks.
| Item | Value | Why it matters |
|---|---|---|
| F1 | CONFIRMED_FACT | The European System of Central Banks opposed requiring major stablecoin issuers to hold at least 60% of reserve assets as bank deposits. |
| F2 | ATTRIBUTED_INTERPRETATION | The central banks said the deposit requirement could expose lenders to changes in the stablecoin market and to funding that is less sticky than ordinary deposits. |
| F3 | CONFIRMED_FACT | The ESCB recommended that MiCA instead require a minimum proportion of token reserves to be held in assets maturing within one to five working days. |
| F4 | ATTRIBUTED_INTERPRETATION | The ESCB said European regulators face material enforcement challenges because non-compliant crypto companies continue to reach EU customers, creating investor-protection concerns. |
| F5 | CONFIRMED_FACT | The position was submitted in a consultation response and does not itself amend the MiCA legal framework. |
| F6 | PIPLIX_INFERENCE | Replacing a bank-deposit quota with a short-maturity liquidity rule could diversify issuer reserves away from bank deposits while keeping assets available for redemptions, depending on the final eligible-asset definition. |
| F7 | CONDITIONAL_SCENARIO | If EU lawmakers adopt the recommendation, regulated issuers may rebalance reserves toward eligible short-term securities; if the current rule remains, major issuers would retain the 60% bank-deposit requirement. |
