ECB and EU Central Banks Call for Removal of MiCA Stablecoin Reserve Rule

European central banks have formally asked the European Commission to delete a provision of the Markets in Crypto‑Assets (MiCA) regulation that obliges large stablecoin issuers to keep 60% of their reserves in commercial‑bank deposits.

What the regulators want changed

The European System of Central Banks (ESCB), which includes the European Central Bank (ECB) and the national central banks of all 27 EU member states, argues that the 60% deposit floor creates a funding risk. Money that moves in and out of stablecoins can be withdrawn from banks quickly, potentially draining liquidity from lenders. The ESCB proposes that a minimum share of reserves be held in assets that mature within one to five working days instead of being locked in bank deposits.

Why Tether rejected the rule

Tether, the issuer of USDT, has not applied for an EU licence under MiCA because it disagrees with the deposit requirements. Under MiCA, “ordinary” issuers must keep 30% of funds in bank deposits, while “significant” issuers must keep 60%. Tether’s CEO Paolo Ardoino has said the deposit floors make tokens less safe and that the EU’s deposit‑insurance limit of €100,000 does not provide sufficient protection.

Implications for the market

The ESCB also warned that rapid growth of euro‑denominated stablecoins could put pressure on bank lending. Enforcement challenges were noted, as non‑compliant crypto firms can still reach EU customers. The consultation on the proposed amendment closes on 30 September, after which the current 30% and 60% floors will remain in force unless EU lawmakers amend MiCA.