ECB Pushes for Stricter Stablecoin Rules Across EU

The European Central Bank and national central banks are pushing for stricter rules on stablecoins in Europe. In response to the European Commission's consultation on the MiCA review, they urged lawmakers to keep the ban on stablecoin interest payments in place and extend it to other services that mimic them.

Crypto lending and staking services would be impacted by the proposed changes, as some platforms already engage in these activities. The central banks argue that these services replicate the economic effect of interest payments, even if they're not explicitly allowed under MiCA.

The European System of Central Banks also wants to scrap the fixed minimum bank-deposit requirements for stablecoin issuers and replace them with liquidity rules tied to how quickly reserve assets can be turned into cash. This shift would apply to all stablecoin issuers, including those building regulated infrastructure across the EU.