ECB, EU Banks Seek MiCA Changes On EU Stablecoin Liquidity Rules
The ESCB said reserve rules should favor liquid assets over bank deposits, warning that stablecoin runs could pressure lenders and expose enforcement gaps.
- On Tuesday, The ESCB proposed replacing mandatory bank-deposit thresholds for Stablecoin reserves with new liquidity requirements, arguing current rules create unnecessary risks for lenders.
- Current mandates require Stablecoin issuers to keep 30% to 60% of reserves in bank deposits, which The ESCB warns "creates a direct link between issuers and credit institutions."
- Instead of bank deposits, The European System recommends minimum liquidity thresholds for assets maturing within one and five working days, including short-term sovereign bonds and overnight reverse repurchase agreements.
- Draft rules from the European Banking Authority suggest significant Stablecoins hold at least 40% of reserves in assets maturing within one working day and 60% within five days; non-significant tokens face 20% and 30% thresholds.
- Regulators face "material challenges" in enforcing MiCA, The ESCB warned, as non-compliant crypto companies maintain access to European customers, creating investor protection concerns throughout the EU-wide market.
12 Articles
12 Articles
The European Central Bank and the national central banks of the European Union questioned a MiCA rule that requires major issuers of stables to maintain 60% of their reserves in bank deposits. Instead, they proposed assets with maturities of between one and five working days, while alerting for compliance problems that still leave crypto companies uncompliant with access to European customers.
ECB Pushes to Scrap MiCA’s 60% Stablecoin Bank Deposit Rule
The ECB and EU national central banks want MiCA’s mandatory bank-deposit floor for stablecoin reserves removed. Central banks argue large stablecoin redemptions could turn issuer deposits into a source of sudden funding stress for commercial banks. Their alternative would put greater emphasis on highly liquid assets that mature or can be converted into cash within one to five working days. Europe’s central banks want to rethink one of MiCA’s mai…
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