ECB Backs Scrapping MiCA’s 60% Stablecoin Deposit Rule

The European Central Bank and the EU’s 27 national central banks want Brussels to remove MiCA’s requirement that significant stablecoin issuers keep 60% of reserves in bank deposits. In a September 22 response to the European Commission’s review, they proposed replacing the deposit floor with requirements for reserves that mature within one to five working days.

Their concern is the banks, not the stablecoins. The European System of Central Banks said issuer deposits can be less stable than household deposits, leaving lenders vulnerable if large numbers of token holders seek redemption and issuers pull cash quickly.

MiCA currently requires e-money token issuers to keep at least 30% of funds in separate bank accounts. The minimum rises to 60% for significant tokens; the rest must be invested in secure, low-risk, highly liquid assets.

That rule has been a sticking point for Tether, issuer of USDT. Chief executive Paolo Ardoino has criticized the deposit requirement, and Tether has not sought MiCA authorization for USDT, according to reporting by Reuters and BeInCrypto.

The overlap does not mean the ECB has adopted Tether’s argument. Tether has objected to the risk of holding a large reserve share with commercial banks; central bankers say those same deposits could expose banks to volatile withdrawals.

The Commission’s consultation is open until September 30. The central banks’ response is input to that review, not a change in law, so the current reserve requirements remain in force unless EU lawmakers amend MiCA.

The consultation also raises a practical question for issuers: whether short-maturity assets can satisfy regulators while remaining liquid enough to meet redemptions. The Commission says feedback will inform its assessment of MiCA and any possible legislative proposal.