ECB Seeks Revision of MiCA Deposit Rule Amid Liquidity Concerns
The European Central Bank (ECB) and EU national central banks are pushing to revise MiCA's 60% deposit rule for large stablecoin issuers. This move aims to address potential liquidity risks for commercial banks, according to a recent proposal.
MiCA, the Markets in Crypto-Assets Regulation, sets reserve requirements for asset-referenced and e-money tokens. The current rules require significant asset-referenced tokens to meet stricter liquidity standards, including a 60% deposit floor for referenced official currencies. However, the ECB has previously warned that reserve withdrawals could transmit stress from stablecoins to banks.
The proposal favors a larger role for highly liquid, short-maturity assets in stablecoin reserves. This change would reduce direct exposure to bank funding and allow issuers to rely more heavily on market liquidity during large redemptions.