ECB Targets 60% Stablecoin Reserve Rule in MiCA Review

The European Central Bank and EU national central banks are pushing to scrap the 60% deposit rule for large stablecoin issuers under MiCA, citing potential liquidity risks for commercial banks. The move is part of a broader review of crypto regulations by the European Commission.

The 60% bank-deposit floor was introduced as part of the Markets in Crypto-Assets Regulation (MiCA), which requires significant asset-referenced tokens to meet stricter liquidity standards. However, the ECB had previously warned that reserve withdrawals could transmit stress from stablecoins to banks.

The Commission's review is ongoing and will assess whether MiCA remains fit for purpose, with potential amendments accompanying its application report if warranted. The current framework remains binding while the process continues.