European Central Bank: Opposes Mandating Stablecoin Reserves to Be Held as Bank Deposits According to Reuters, the European Central Bank and national central banks of EU member states, in their consultation on the MiCA crypto-assets regulatory framework, opposed requiring major stablecoin issuers to hold at least 60% of their reserves as bank deposits, arguing that this could expose banks to volatility in the stablecoin market and undermine deposit stability. The central banking system recommended instead that a specified proportion of reserves be required to consist of short-term assets maturing within one to five business days. The central banks also noted that, despite MiCA’s entry into force, non-compliant crypto firms continue to access EU customers, presenting “significant challenges” for regulatory enforcement and posing risks to investor protection.