ECB seeks MiCA reserve change flagged by Tether in 2024 - Crypto News

The European Central Bank has proposed changes to reserve requirements under the Markets in Crypto-Assets (MiCA) framework, revisiting an issue that stablecoin issuer Tether flagged in 2024. The development marks a renewed regulatory focus on how stablecoin reserves are composed and held across the European Union.

Reserve rules matter because they determine what backs a stablecoin's peg and how exposed holders are to credit, liquidity, and custody risks. Tether's earlier flagging of the issue suggests the original requirements raised practical concerns for large issuers operating under MiCA. Any revision could shift compliance costs and the types of assets issuers are permitted to hold.

For markets, the key question is direction: whether the ECB's proposed change tightens or relaxes existing standards. Watch for the formal text, the timeline for implementation, and how major issuers respond. Broader stablecoin regulation in the EU can influence where liquidity concentrates, so clarity here may affect both euro-denominated and dollar-pegged products over time.