ECB Urges EU to Replace 60% Stablecoin Deposit Rule
The European Central Bank argues that mandatory bank deposits create systemic risk. It proposes a shift to short-term liquid assets.
Key points
- ECB urges replacing the 60% stablecoin deposit rule with short-term liquid assets.
- Central banks cite transmission of redemption stress to commercial banks as the primary risk.
- The European Commission's MiCA review consultation deadline is September 30, 2026.
The European Central Bank pushed to scrap the 60% deposit floor for stablecoin reserves. It argued that mandated bank deposits could transmit redemption stress to commercial banks.
Central banks favor highly liquid assets with maturities of one to five working days. This shift aims to reduce direct exposure of the banking system to crypto volatility.
Banking risk drives regulatory shift
MiCA currently requires significant stablecoin issuers to keep at least 60% of reserves in bank deposits. The ECB research warned that sudden withdrawals could pressure commercial bank liquidity.
This transmission channel links stablecoin redemptions directly to traditional banking stress. Reducing mandatory bank exposure isolates the two financial systems from each other.
Commission review determines final outcome
The European Commission is conducting a formal review of the MiCA regulation. Its targeted consultation remains open until September 30, 2026.
Amendments may accompany the application report if the current rules are deemed unfit for purpose. The existing framework remains binding across the bloc while this legislative process continues.
Market liquidity standards remain strict
The European Banking Authority already uses short-maturity ranges in its MiCA liquidity standards. These standards cover deposit concentration and reserve management requirements for issuers.
CryptoRank reports that the debate could materially reshape stablecoin reserve allocation. This change will influence broader crypto adoption and banking exposure in Europe.
