ECB Seeks to Repeal MiCA Rule on Stablecoin Reserve Requirements

The European Central Bank (ECB) and other EU central banks are pushing to repeal a clause in the MiCA rulebook that requires large stablecoin issuers to hold at least 60% of their reserves in commercial bank deposits.

This move comes after Tether, the largest issuer of the stablecoin USDT, refused an EU license over the same clause. According to CEO Paolo Ardoino, this provision makes tokens less safe and could put consumers' funds at risk due to EU deposit insurance limits.

The ECB and other central banks argue that requiring issuers to hold 60% of their reserves in bank deposits could drain lenders overnight if there are heavy redemptions. Instead, they want a minimum share of reserves held in assets that mature within one to five working days.