ECB and EU central banks push to rewrite MiCA stablecoin reserve rules as banks fight back
Key Takeaways
. The ECB and all 27 EU national central banks want the mandatory bank-deposit requirement for stablecoin reserves under MiCA removed.
. MiCA currently requires stablecoin issuers to hold at least 30% of reserves in bank deposits, rising to 60% for significant issuers.
. Central banks want the fixed deposit threshold replaced with liquidity rules requiring more reserve assets to mature within one to five working days.
Europe’s central banks are pushing for a major rewrite of MiCA’s stablecoin reserve rules, arguing that a regulation designed to make stablecoins safer could instead create new risks for commercial banks.
The European System of Central Banks, which includes the European Central Bank and the national central banks of all 27 EU countries, recommended removing MiCA’s minimum bank-deposit requirement in its response to a review of the bloc’s crypto rules.
Under MiCA, stablecoin issuers must currently keep at least 30% of their reserves in credit institutions, while the requirement rises to 60% for significant stablecoins.
The central banks instead want reserve requirements tied more directly to liquidity, including minimum holdings of assets that mature within one and five working days.
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