The European System of Central Banks has formally requested that the European Commission remove a specific provision from the MiCA regulation. This rule currently mandates that major stablecoin issuers maintain 60% of their reserves in commercial bank deposits. The central banks argue that such funds are inherently volatile and could lead to sudden liquidity drains for lenders during periods of heavy token redemption.
Instead of bank deposits, the central banks propose that issuers hold a minimum share of reserves in assets with maturities ranging from one to five working days. The filing also highlights significant challenges in enforcing existing regulations, noting that non-compliant crypto firms continue to provide services to customers within the European Union despite the current legal framework.
Tether, the issuer of the USDT stablecoin, has previously declined to seek an EU license specifically due to these deposit requirements. CEO Paolo Ardoino has argued since 2024 that the mandate compromises token safety, particularly given that EU deposit insurance is capped at €100 000. Tether maintains that it may reconsider its position only if the regulatory environment changes.
Under current MiCA rules, ordinary issuers are required to keep 30% of their funds in bank deposits, while those classified as significant must hold 60%. These thresholds remain in effect until EU lawmakers decide to amend the legislation. The consultation period for the proposed changes is scheduled to conclude on September 30.
