ECB and EU Central Banks Seek to Repeal MiCA Stablecoin Reserve Rule

The European System of Central Banks (ESCB) is urging the European Commission to remove a MiCA requirement that forces major stablecoin issuers to hold 60% of reserves in commercial bank deposits. Regulators argue that such deposits are unstable and prone to sudden outflows, suggesting a shift toward short-term assets instead. Tether (USDT) previously rejected the MiCA licensing framework specifically due to these reserve requirements, with CEO Paolo Ardoino citing concerns over token safety and deposit insurance limits.