EU Central Banks Push to Amend MiCA Stablecoin Deposit Rules

European central banks have submitted a proposal to the European Commission that would replace the current mandatory bank‑deposit minimum for stablecoin reserves with a set of liquidity‑timing requirements. The change is intended to give issuers more flexibility in how they meet redemption needs while limiting the exposure of banks to sudden stablecoin withdrawals.

Current MiCA Deposit Floor

Under the Markets in Crypto‑Assets Regulation (MiCA), issuers of non‑significant stablecoins must keep at least 30% of their reserves as deposits with EU credit institutions, rising to 60% for significant tokens. These deposits serve as a cash source for redemptions but also create a claim on the banks holding the funds.

Proposed Liquidity‑Based Approach

The European System of Central Banks (ESCB) suggests removing the fixed deposit quota and instead requiring issuers to demonstrate that a portion of their total reserves can be turned into cash within short timeframes:

• For non‑significant tokens: at least 20% of reserves available within one working day and 30% within five days.
• For significant tokens: at least 40% within one day and 60% within five days.

Eligible assets would include cash, short‑term sovereign paper, and reverse‑repo agreements that can be liquidated within the specified windows.

Potential Impact on Banks and Issuers

Removing the mandatory deposit share would reduce the direct exposure of banks to stablecoin runs, while allowing issuers to allocate reserves to higher‑yielding short‑term securities. Safeguards in the draft limit concentration risks, such as capping any single systemically important bank’s share of an issuer’s reserves at 25%.

Market Context

Euro‑denominated stablecoins held a market capitalization of roughly €450 million in January 2026, far smaller than the $300 billion of dollar‑denominated tokens. Nonetheless, the concentration of reserves in a few banks could amplify systemic risk if stablecoin adoption expands.

Industry Reaction

Tether has echoed the ESCB’s concerns, arguing that a mandatory bank‑deposit share can transmit distress between issuers and lenders. The company has already wound down its euro‑backed EURT token and continues to operate USDT outside the MiCA authorization framework.

Next Steps

The European Commission’s consultation on the MiCA review runs until September 30. Responses will inform any future legislative amendment, which could shift the architecture of stablecoin redemption safety from a location‑based to a maturity‑based model.