ECB Seeks Overhaul of Stablecoin Reserve Rules for Bank Risk Protection

The European Central Bank (ECB) and all 27 EU national central banks are pushing to change Europe's stablecoin rules. They argue that the current MiCA's 60% reserve rule could put banks at risk due to rapid redemptions in crypto markets.

Under the current rules, major stablecoin issuers must keep at least 60% of their reserves as bank deposits. However, the ECB and other central banks want this requirement removed.

Instead, they propose that stablecoin issuers hold a larger share of reserves in highly liquid assets maturing within one to five working days. This would give them faster access to funds when users redeem their tokens.