🚨 European central banks are backing off banks on stablecoins. The European System of Central Banks, which includes the ECB and the 27 national central banks, is calling for the elimination of the rule requiring significant issuers to hold 60% of reserves in bank deposits. This requirement exposes lenders to market fluctuations in the stablecoin sector. This threshold applies only to the largest issuers—those with 10 million or more holders or €5 billion or more in issuance. All other issuers remain subject to a 30% reserve requirement. As of August 8, 2026, the ESMA registry listed 22 authorized entities, including Circle, Société Générale-FORGE, and Banking Circle. The same request calls for European-level supervision of major platforms, which are currently licensed on a country-by-country basis by national authorities.