ECB Proposes Overhaul of Stablecoin Reserve Requirements in MiCA Regulation

The European Central Bank (ECB) has proposed revising the MiCA rule that requires stablecoin issuers to hold 30% of their reserves in bank deposits and 60% for significant issuers.

This requirement has been criticized by Tether CEO Paolo Ardoino, who argued that it could create systemic risk for stablecoin holders if there are problems in the banking system.

The ECB's proposal aims to focus on asset liquidity instead of reserve requirements and sets a minimum share of reserves that must be available via assets maturing within one and five business days.

The proposed changes have not yet been adopted, and the current 30% and 60% reserve requirements remain part of MiCA unless legislative changes are introduced.