European Central Bank Proposes Replacing MiCA Stablecoin Bank-Deposit Rules With Liquidity Standards - NewsCord

The European Central Bank has proposed replacing the bank-deposit treatment of stablecoin reserves under the Markets in Crypto-Assets (MiCA) framework with dedicated liquidity standards. Under the current regime, stablecoin issuers that hold reserves in bank deposits are subject to rules designed for deposit-taking institutions. The proposed shift would instead apply liquidity requirements tailored to stablecoin reserve structures, marking a notable adjustment in how European regulators approach the asset class.

For markets, the proposal signals that policymakers are refining rather than abandoning the MiCA framework. Reserve composition and liquidity management sit at the heart of stablecoin credibility, so any change to how reserves are treated can influence issuer costs, operational models, and the perceived safety of tokens used widely in crypto trading and settlement. A move toward liquidity-based standards could also affect how issuers diversify reserves between deposits and other instruments.

What to watch: whether the proposal advances through the EU legislative process, how it interacts with existing MiCA provisions, and whether issuers adjust reserve strategies in response. As with any regulatory consultation, the final outcome remains uncertain, and market participants should track official communications rather than assume the proposal will be adopted as drafted.