EU Central Banks Seek Stricter Stablecoin Yield Rules

The European Central Bank and national central banks are pushing for stricter rules on stablecoin yield. They want EU regulations to prohibit crypto platforms from offering products that generate returns from stablecoin holdings, including lending, borrowing, staking, and similar services.

The ESCB proposed replacing MiCA's bank deposit reserve thresholds with liquidity-based maturity requirements. Draft rules could require larger stablecoins to hold 40% of reserves within one-day maturity and 60% within five working days.

The central banks aim to prevent stablecoins from functioning like interest-bearing bank deposits. They also want to cover unregulated activities linked to stablecoin returns, ensuring that electronic money supports payments, not savings.