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Crypto Regulation

ECB, EU Central Banks Push to Replace MiCA Stablecoin Deposit Rule

The European Central Bank and EU national central banks are seeking to replace MiCA’s minimum bank-deposit requirement for stablecoin issuers with liquidity thresholds. The supervisors warned that sudden stablecoin withdrawals could strain the lenders holding those deposits. The proposal targets the reserve rules that set how much of a stablecoin’s backing must sit in bank accounts.

Original source

AI take

This is a structural argument about where stablecoin reserve risk should sit: in bank deposits, where supervisors see contagion into lenders, or in liquid assets that can absorb redemptions without stressing the banking system. It matters most for issuers whose reserve mix is dictated by the current deposit rule, and for the banks that hold those balances. The open question is whether supervisors can agree on liquidity thresholds that are strict enough to satisfy prudential concerns without making EU issuance harder to sustain.

Generated by AI for reference only.

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