ECB Seeks to Scrap MiCA's 60% Bank-Deposit Floor for Stablecoins

The European Central Bank (ECB) and EU national central banks are pushing to revise the MiCA regulation's requirement for stablecoin issuers to hold at least 60% of their reserves in bank deposits.

This move is aimed at addressing potential liquidity risks for commercial banks, which could be exposed to large withdrawals from stablecoin holders. The ECB had previously warned that reserve withdrawals could transmit stress from stablecoins to banks.

The MiCA regulation sets reserve requirements for asset-referenced and e-money tokens, with significant issuers required to meet stricter liquidity standards. However, the European Commission is now reviewing the regulation and may make changes to the 60% deposit floor requirement.