ECB Opposes Bank Deposit Requirements for Stablecoin Issuers
The European Central Bank and other European Union central banks have pushed back against proposed bank deposit requirements for stablecoin issuers. In a response to a consultation on the Markets in Crypto-Assets regulations, they argued that such requirements could expose lenders to changes in the stablecoin market and less stable deposits.
The current requirement is for major stablecoin issuers to hold 60% of their reserves as bank deposits. However, the European System of Central Banks recommended changing this to a requirement for a minimum percentage of token reserves to be held in assets that mature within one and five working days.
This change aims to reduce the risk of banks being exposed to changes in the stablecoin market. The central banks also highlighted challenges in enforcing the bloc's crypto regulations, with non-compliant crypto companies continuing to have access to EU customers.