ECB Central Banks Seek MiCA Stablecoin Reserve Rule Overhaul

The European Central Bank and the European System of Central Banks (ESCB) submitted a formal response to the European Commission's review of the Markets in Crypto-Assets Regulation (MiCA) on September 22, 2026, proposing to replace fixed bank-deposit reserve requirements for stablecoin issuers with liquidity rules based on asset maturity. Under current MiCA rules, stablecoin issuers must hold at least 30% of reserves as bank deposits for non-significant tokens and 60% for tokens classified as significant. The ESCB argues that these fixed deposit quotas create a direct link between stablecoin issuers and banks, potentially forcing issuers to withdraw large sums quickly during periods of rapid redemption and straining bank liquidity at the moment it is most needed. Instead of deposit percentages, the central banks propose requiring issuers to hold minimum liquidity in reserve assets maturing within one and five working days. The ESCB highlighted overnight reverse repurchase agreements and short-term sovereign bonds as instruments that could help issuers meet near-term liquidity targets without relying on bank deposits.