NewsMeter
The European Central Bank and EU central banks want to replace MiCA’s stablecoin bank-deposit requirements with liquidity thresholds. The move responds to warnings that sudden withdrawals could strain lenders.
This shift targets the structural risk in the current regulatory framework. The regulatory pivot The core issue is the requirement for minimum bank deposits.
Under the Markets in Crypto-Assets regulation, stablecoin issuers must hold specific reserves. The ECB argues this static requirement does not account for dynamic market stress.
A sudden spike in redemptions could force banks to sell assets or seek emergency funding. The proposed liquidity thresholds offer a more flexible buffer.
Keep reading