ECB and EU central banks challenge MiCA stablecoin rule
6.7 Regulation ECB and EU central banks want to replace MiCA’s 60% bank deposit rule for stablecoins with liquid assets, and call for stricter oversight of crypto firms.
The European Central Bank (ECB) and national central banks of the European Union have jointly urged the removal of MiCA’s requirement that major stablecoin issuers hold at least 60% of their reserves as bank deposits. They argue this rule could increase banks’ exposure to volatility from the stablecoin market and threaten deposit stability. Instead, the central banks recommend that a portion of reserves be held in highly liquid assets maturing within one to five business days, which would better support financial stability. They also highlight ongoing enforcement challenges with MiCA, noting that non-compliant crypto firms can still reach EU customers, raising investor protection concerns. Additionally, the ECB supports maintaining the ban on interest payments for stablecoins and calls for stricter regulatory oversight, including centralized supervision of significant crypto firms operating within the EU.
