ECB Warns Risky MiCA Stablecoin Deposit Rule Could Harm Banks

The European Central Bank (ECB) is calling for changes to the MiCA stablecoin reserve rules in Europe. The bank wants lawmakers to remove a rule from the Markets in Crypto-Assets (MiCA) legislation that requires stablecoin issuers to keep 30% of their reserves in bank deposits, and 60% for significant stablecoins.

The ECB is concerned that this rule could lead to bank funding instability, as the funds kept in bank deposits are considered highly liquid resources for stablecoin issuers but liabilities that must be repaid on demand for banks. The European Systemic Risk Board also shares this concern, warning that a MiCA stablecoin run could deplete liquidity in smaller banks.

The ECB supports an alternative rule proposed by the European Banking Authority (EBA) in 2024, which suggests that significant stablecoins must keep 40% of their funds maturing within one day and 60% maturing within five days. Non-significant issuers would be required to keep 20% of their funds maturing within one day and 30% maturing within five days.

The proposed change is part of the ongoing review of Regulation (EU) 2023/1114, which governs the use of Distributed Ledger Technology (DLT) and token transfers in the EU. The Commission launched its consultation on May 20 and closes on September 30, 2026.