The European Central Bank and national central banks across the European Union recommended changing a reserve requirement for stablecoin issuers under the bloc’s MiCA crypto rules, Reuters reported on September 22.
Current rules require stablecoin issuers to keep a portion of reserves in bank deposits. The central banks said that requirement could make bank funding less stable during periods of market stress.
They proposed replacing the deposit rule with requirements focused on assets that can mature within very short periods, aiming to improve liquidity during redemptions. The recommendation is a proposal, not an enacted change.