ECB and EU central banks seek to relax MiCA's 60% bank deposit reserve requirement for major stablecoin issuers.
DeFi & Yields ·
The European Central Bank and EU central banks are seeking to relax a Markets in Crypto Regulation (MiCA) requirement that obligates major stablecoin issuers to maintain 60% of their reserves in bank deposits, according to reporting. The move reflects a push to modify a core prudential standard embedded in the EU's comprehensive digital asset framework.
The 60% bank deposit reserve requirement was established under MiCA to reduce systemic risks associated with stablecoin arrangements and ensure adequate backing for redemptions. By seeking to relax or eliminate this threshold, the central banks signal concern that the rule may impose constraints on major issuers' operational flexibility or capital efficiency, potentially affecting the competitive positioning of stablecoin products in the EU market.
The outcome remains uncertain. It is unclear whether regulators will reach consensus on an alternative reserve composition framework, what metrics or collateral types might substitute for bank deposits, or how quickly any modification could be implemented through the existing MiCA governance structures.