EU Stablecoin Rules Edge Closer to US Model Amid ECB Push for Deposit Reform

Brussels and Washington's stablecoin rulebooks are drawing closer as the European Central Bank (ECB) targets a key provision in the Markets in Crypto-Assets Regulation (MiCA).

The ECB, along with the European System of Central Banks (ESCB), has formally asked the European Commission to delete MiCA's rule requiring stablecoin issuers to hold up to 60% of reserves as bank deposits.

Currently, issuers of non-significant tokens must keep at least 30% of reserves in bank deposits, rising to 60% for significant tokens. The ESCB argues that this mandate creates a direct link between issuers and credit institutions, exposing banks to liquidity problems if a stablecoin run forced rapid withdrawals.

The proposal would move the EU closer to the model in the United States, where the GENIUS Act regulates stablecoin reserves without rigid deposit-percentage requirements. The ESCB proposes replacing percentage-based deposits with liquidity thresholds, requiring reserve assets to mature within one to five working days.