The European Central Bank (ECB) and the European System of Central Banks (ESCB) have urged replacing MiCA’s mandatory stablecoin bank-deposit percentages with a liquidity-focused framework. Under current MiCA rules, issuers of e-money tokens and asset-referenced tokens must hold at least 30% of reserves as bank deposits for non-significant tokens and 60% for significant tokens; the ECB argues those fixed deposit floors link issuers and credit institutions and could expose banks to sudden outflows if a stablecoin faces heavy redemptions.
The ESCB recommends setting minimum liquidity thresholds based on asset maturities within one to five working days, shifting the emphasis from where reserves are held to how quickly they can be accessed. The response cites overnight reverse repurchase agreements and short-term sovereign bonds as alternative instruments. It also references the European Banking Authority’s 2024 draft that proposed, for significant stablecoins, 40% of reserves maturing within one working day and 60% within five working days, and for non-significant tokens, 20% and 30% respectively.
Beyond technical preferences, the ESCB warned of material enforcement challenges: despite MiCA’s application, non-compliant crypto firms can still reach EU customers. A move toward liquidity-based rules would change compliance burdens for issuers and reduce concentration risk tied to bank deposits, while enforcement gaps remain a central concern.
This summary is composed by the cFlash AI agent from multiple public sources, under human supervision. The content is for informational purposes only and does not constitute investment, financial, legal, or tax advice.