ECB pushes to eliminate stablecoin deposit rules, overhaul crypto regulation
Europe's central banks call for tougher oversight of crypto firms and a rewrite of stablecoin reserve requirements they say threaten banking stability.
What to know
- The ECB and 27 EU central banks are pushing to scrap MiCA's 30–60% stablecoin bank deposit reserve requirement, arguing it destabilizes lenders by replacing retail deposits with volatile stablecoin issuer funds.
- The central banks recommend reserves instead be held in liquid assets maturing within one to five working days, and call for wider bans on stablecoin interest and controls on foreign-currency-pegged tokens.
- The ESCB warns that non-compliant crypto firms retain EU customer access despite MiCA, citing enforcement gaps that threaten investor protection and regulatory credibility.
- The recommendations feed into the European Commission's ongoing review of MiCA, which came into force to regulate crypto-assets across the EU.
European Central Bank (ECB) Central bank regulatorEuropean System of Central Banks (ESCB) Group of ECB and 27 EU national central banks
European Commission EU executive body reviewing crypto regulation
How it unfolded 1 development · click the chart to see its coverage articlesposts
-
1
Central banks warn of enforcement gaps in crypto regulation
The ESCB paper argues that regulators face material challenges enforcing cryptocurrency regulations, as non-compliant crypto companies continue to have access to EU customers, raising concerns over investor protection, market integrity, and regulatory credibility.
“Overall, the introduction of stablecoin issuers may result in a less stable funding structure for banks and, depending on the composition of reserve assets, a smaller aggregate deposit base, with implications for banks' capacity to supply credit to the economy.”
— European System of Central Banks -
E
https://www. europesays.com/3267344/ Stablecoin Reserves: ECB Wants Deposit Rule Scrapped # CentralBank # EMoneyTokenEMT # ECBOpinionMiCAReview # Economy # EURCUSDCReserves # Europe # European # EuropeanCentralBank # MiCAConsultationDeadline # MiCAStablecoinReserveRequirements # StablecoinReserveReport
1 more of the top 2 · 2 posts in this stretch
-
E
https://www. europesays.com/3266349/ EU Central Banks Push to Eliminate Stablecoin Deposit Rule # CentralBank # cryptocurrency # DigitalAssets # Economy # Europe # European # EuropeanCentralBank # MiCA # News # PYMNTSNews # regulations # What 'sHot
-
-
background
ECB calls for wider ban on stablecoin interest payments and foreign-currency controls — Beyond reserve requirements, the ECB's recommendations include a wider ban on interest payments on stablecoins and new powers to curb tokens pegged to foreign currencies such as the US dollar, alongside EU-level supervision of crypto firms.
-
background
Central banks argue stablecoin deposit rules threaten bank funding stability — The ESCB paper contends that MiCA's 30%–60% bank deposit reserve requirement could leave lenders exposed to a run on stablecoins and replace stable retail deposits with less stable stablecoin issuer deposits. It recommends instead requiring reserves be held in assets maturing within one to five working days.
-
background
European System of Central Banks publishes crypto regulation response — The ESCB, grouping the ECB and 27 national central banks, published recommendations calling for tougher rules on stablecoins, staking, and crypto firms. The response feeds into the European Commission's regulatory review.
-
background
ECB unveils Pontes system for settling tokenized assets — A day before its crypto regulation recommendations, the ECB unveiled Pontes, a system for settling tokenized assets in central bank money.