The European Central Bank (ECB) and the European System of Central Banks (ESCB) have formally proposed that the European Commission remove the mandatory bank-deposit requirements for stablecoin issuers under the MiCA regulation. The proposal was submitted on September 22.
Current MiCA rules require issuers of e-money tokens and asset-referenced tokens to hold a portion of their reserves in bank deposits. Specifically, non-significant tokens must maintain a 30% floor, while significant tokens are subject to a 60% requirement.
The ECB argues that these mandates create systemic risks by exposing banks to volatile deposits that could be withdrawn rapidly during redemption waves. The regulator suggests replacing fixed percentages with a framework focused on liquidity, where assets must mature within one to five working days.
Industry groups, including Bruegel and Blockchain for Europe, have previously expressed concerns regarding concentration risks and limited operational flexibility. The ESCB also highlighted enforcement challenges, noting that non-compliant offshore platforms continue to reach EU users.
