Why Europe’s Central Banks Want to Rewrite the Rules on Stablecoin Reserves

TLDR

• The ECB and EU central banks want to scrap rules requiring stablecoin issuers to hold a set percentage of reserves as bank deposits
• They propose replacing deposit rules with liquidity thresholds based on how quickly assets can mature
• The current rule requires major stablecoin issuers to hold 60% of reserves in bank deposits
• Non-compliant crypto firms can still reach EU customers, raising investor protection concerns
• Tether CEO Paolo Ardoino raised similar concerns back in 2024, warning of systemic risk to banks

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The European Central Bank and EU national central banks are pushing to change how stablecoin issuers manage their reserves, saying the current rules could put banks at risk.

🚨BREAKING: 🇪🇺The ECB and all 27 EU central banks call to scrap MiCA’s rule forcing major stablecoin issuers to keep 60% of reserves in bank deposits.

They argue issuers should not face a minimum bank-deposit requirement because volatile stablecoin flows could expose lenders to… pic.twitter.com/oqNYESPM9n

— Coin Bureau (@coinbureau) September 22, 2026

The European System of Central Banks published its response Tuesday to the European Commission’s review of the Markets in Crypto-Assets Regulation, known as MiCA.

MiCA came into force last year and set rules for crypto companies operating across the EU.

What the Current Rules Require

Right now, MiCA requires stablecoin issuers to hold at least 30% of their reserves as bank deposits. For larger, more widely used stablecoins, that rises to 60%.

The ECB and its partner central banks say this creates a direct link between stablecoin issuers and banks. That link, they argue, could cause problems if a stablecoin faces a sudden wave of withdrawals.

If an issuer has to pull large deposits from a bank quickly, that bank could face a liquidity crunch. This is especially true if stablecoin reserves make up a large share of the bank’s funding.

The central banks also point to what happened in March 2023, when Silicon Valley Bank collapsed. Circle had $3.3 billion of its USDC reserves held at the bank, which triggered a run on the stablecoin.

What the ECB Is Proposing Instead

The ESCB wants to replace deposit rules with minimum liquidity thresholds. Under the new approach, a portion of reserves would need to mature within one working day, and a larger portion within five working days.

The European Banking Authority had already drafted similar guidelines in 2024. Those rules called for major stablecoins to hold 40% of reserves in assets maturing within one day, and 60% within five days.

The central banks also pointed to overnight reverse repurchase agreements and short-term government bonds as suitable alternatives to bank deposits.

Tether CEO Paolo Ardoino raised similar concerns in late 2024. He described a scenario where a stablecoin holds 10 billion euros in reserves, with 6 billion sitting in bank deposits. If the bank lends out 90% of those funds, only 600 million euros would actually be available. That could leave the issuer short of cash if it suddenly needs to meet redemptions.

The ESCB’s new stance echoes that warning closely.

The central banks also flagged a separate enforcement problem. Non-compliant crypto companies can still access EU customers, which they say creates risks for investors.

No changes to MiCA have been confirmed yet. The ESCB’s statement is a response to a consultation, meaning regulators will now review the feedback before deciding next steps.