The European Central Bank and EU national central banks have formally proposed amending one of MiCA’s core stablecoin reserve requirements: the mandatory bank deposit floor. In a submission tied to the European Commission’s 2026 MiCA review, the European System of Central Banks called for eliminating the rule that forces significant stablecoin issuers to hold at least 60% of reserves in bank deposits, and ordinary e-money token issuers at least 30%.
Instead, the ESCB wants tiered minimum liquidity requirements based on assets maturing within one and five business days, including overnight reverse repurchase agreements and short-term sovereign bonds. The central banks argue that large reserve deposits create a direct link between stablecoin issuers and commercial banks, potentially transmitting redemption stress into traditional banking.
The proposal references the March 2023 collapse of Silicon Valley Bank, when Circle revealed that $3.3 billion of USDC reserves were held there, helping trigger a temporary depeg. That event remains a key example of two-way risk: banks exposed to sudden stablecoin withdrawals, and stablecoins exposed to bank failure.
Under current MiCA rules, Article 45 requires significant asset-referenced tokens to meet strict liquidity standards, with a deposit floor of at least 60% for referenced official currencies. Article 54 applies a 30% deposit rule to ordinary e-money token reserves. The European Banking Authority’s existing technical standards already cover liquidity parameters, deposit concentration and reserve management.
Tether CEO Paolo Ardoino backed the ESCB proposal, saying Tether had previously declined a European license because of the deposit clause. The European Commission’s consultation runs until Sept. 30, 2026, and any formal amendment would need to move through the EU legislative process.
