ECB Pushes to Revamp Stablecoin Reserve Rules

The European Central Bank (ECB) and all 27 national central banks in the EU are pushing for changes to Europe's stablecoin rules. They want to scrap the current MiCA requirement that stablecoin issuers hold at least 60% of their reserves as bank deposits.

Instead, they propose requiring issuers to keep a larger share of reserves in highly liquid assets maturing within one to five working days. This would reduce the risk of banks facing liquidity issues due to rapid redemptions.

The proposed change could affect major euro stablecoins like Circle's EURC, which has about €411 million in circulation and is already MiCA-compliant.