ECB Seeks Tighter Stablecoin, Staking, and Crypto Firm Rules for EU
The European Central Bank (ECB) is urging the EU to tighten its rules on stablecoins, staking, and crypto firms. The move comes as Brussels reviews the Markets in Crypto-Assets Regulation (MiCA).
According to a proposal from the ECB and the European System of Central Banks, regulators should strengthen oversight across the rapidly expanding digital-asset market.
The proposal aims to reduce issuers' reliance on commercial banks by allowing them to hold more highly liquid assets, such as Treasury bills and repurchase agreements, instead of bank deposits. This change would remove MiCA's 30%-60% bank deposit reserve requirement for stablecoin issuers.
By adopting this new approach, regulators could reshape how stablecoin issuers manage reserves and compete within Europe.