The European Central Bank and all 27 EU national central banks are pushing for a major change to Europe’s stablecoin rules. They are arguing that the current MiCA’s 60% reserve rule could put banks at risk.
The central banks want issuers to move more reserves into short-term, highly liquid assets instead of commercial bank deposits.
ECB Targets MiCA’s 60% Reserve Rule
The European System of Central Banks (ESCB), which includes the ECB and the 27 national central banks, raised the issue in its response to a consultation on the Markets in Crypto-Assets (MiCA) framework.
Under the current rules, major stablecoin issuers must keep at least 60% of their reserves as bank deposits. The ECB and other central banks now want this requirement removed.
Their main concern is that stablecoin reserves can move quickly when crypto markets fall. If issuers suddenly face large redemption requests, they may need to withdraw a large amount of money from commercial banks.
Therefore, the ECB says that this could make bank deposits less stable and increase liquidity risks for lenders.
Central Banks Want Faster Access to Reserves
Instead of relying heavily on commercial bank deposits, the ESCB wants MiCA to require a minimum share of reserves to be held in assets that mature within one to five working days.
The proposal would give stablecoin issuers access to assets that can be converted or settled quickly when users redeem their tokens. It would also reduce the amount of stablecoin related funding directly tied to traditional banks.
The change could become important for major euro stablecoins as issuers adjust their reserve structures to meet European rules.
Circle’s EURC Could Feel the Change
The proposed changes could directly matter for regulated euro stablecoins such as Circle’s EURC, which is already MiCA-compliant and fully backed by euro-denominated assets. Circle says EURC had about €411 million in circulation.
Circle’s reserve structure already includes regulated financial institutions, while its EURC framework requires reserves to match the tokens in circulation.
If MiCA changes its reserve rules, Circle and other regulated issuers could have to adjust how they manage those reserves.
MiCA Enforcement Raises Another Concern
The central banks also raised concerns about how MiCA rules are being enforced. They said European regulators are facing problems while trying to stop crypto companies that do not follow the rules but still serve EU customers.
This could put legal stablecoin issuers at a disadvantage.
Companies that follow EU rules may face stricter rules, while offshore platforms can still serve European users.
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