The ECB and EU Central Banks Want Brussels to Scrap MiCA's 60% Stablecoin Deposit Rule

The European System of Central Banks (ESCB) has formally requested that the European Commission revise the Markets in Crypto-Assets (MiCA) regulation to remove the mandatory 60% deposit requirement for significant stablecoins. Central banks argue that forcing issuers to hold a majority of reserves as bank deposits creates systemic risks, as rapid token redemptions could trigger sudden liquidity drains on commercial banks. Instead, the ESCB proposes a liquidity-bucket approach, requiring reserves to be held in highly liquid, short-dated assets like sovereign securities and reverse repurchase agreements. This shift aims to decouple stablecoin reserves from the banking system, preventing potential contagion from crypto-market volatility. The proposal highlights ongoing challenges in enforcing MiCA, particularly regarding multi-issuer arrangements where tokens are marketed as compliant while reserves are held outside the EU. As the European Commission reviews MiCA, these recommendations could significantly alter the operational landscape for non-bank electronic money institutions. The outcome of this consultation will be critical for issuers like CACEIS and Revolut, who must balance regulatory compliance with efficient reserve management.