EU central banks want the EU to rethink MiCA's stablecoin reserve rules. MiCA requires issuers of non-significant tokens to keep at least 30% of reserves as deposits with EU credit institutions. The requirement rises to 60% for significant tokens. The reported ESCB position would remove the fixed deposit minimum. Deposits would remain eligible under the alternative. Reserve safety would instead depend on how much cash becomes available within one or five working days. The proposal is part of the European Commission's review of MiCA. The consultation runs through Sept. 30. The Commission says responses may inform a later legislative proposal. The proposed liquidity thresholds would require non-significant tokens to hold at least 20% of reserves available within one working day. They would require 30% available within five days. The thresholds would rise to 40% and 60% for significant tokens. Withdrawable cash and eligible reverse repurchase agreements could count toward the thresholds. Specified highly liquid financial instruments could also qualify. Short maturity alone would not make an asset eligible. Draft safeguards would cap an issuer's deposit at one systemically important bank at 25% of reserves. The same deposit would be capped at 1.5% of that bank's total assets. Qualifying securities and money-market instruments from one issuer would be capped at 35% of reserves in the 0% reference-haircut category. Euro-denominated stablecoins had a market capitalization of about €450 million in January 2026. Dollar-denominated tokens had roughly $300 billion. During the March 2023 banking turmoil, Circle held part of USDC's reserves at Silicon Valley Bank. Uncertainty over access to those funds pressured USDC's peg. USDC's market capitalization fell 26% over a month, according to an ECB analysis. Heavy redemptions could force securities sales or repo unwinds. Concentrated reserve holdings could carry stablecoin stress into sovereign or funding markets. Tether CEO Paolo Ardoino said the reported ESCB position echoed Tether's warning about MiCA's mandatory bank-deposit share. Tether said that concentrating reserves in commercial banks can transmit distress between an issuer and a lender. Removing the deposit floor would not change MiCA requirements covering authorization, governance, capital, audits, reserve segregation, redemption, and prudential supervision. The proposal would not confer EU authorization on USDT.
EU Central Banks Propose MiCA Stablecoin Reserve Rule Changes
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Summary
EU central banks are proposing revisions to MiCA (EU Markets in Crypto-Assets Regulation) stablecoin reserve rules. Current requirements demand non-significant issuers keep at least 30% in EU bank deposits, rising to 60% for significant tokens. The new plan removes fixed deposit targets, replacing them with liquidity thresholds—20% available within one day and 30% within five for non-significant tokens. The European Commission is accepting feedback until Sept. 30. The changes aim to manage liquidity risks in stablecoin regulation, following the 2023 banking crisis that affected USDC’s peg.
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