ECB Seeks Removal of MiCA Stablecoin Reserve Rule

Central banks across Europe are urging Brussels to eliminate a MiCA provision regarding stablecoin reserves. The regulation currently requires major issuers to deposit 60% of those funds in commercial banks. Tether declined an EU license due to this very clause.

The request was submitted during the European Commission's evaluation of MiCA, the European Union's regulatory framework for cryptocurrencies. A stablecoin is a type of digital asset intended to maintain a consistent value, typically pegged to one dollar or one euro.

Central Banks' Proposed Amendment to MiCA

The European System of Central Banks (ESCB) submitted its observations on Tuesday. This entity comprises the European Central Bank (ECB) along with the central banks from all 27 EU member states.

INTEL: ECB and EU central banks are pushing to scrap MiCA’s rule requiring major stablecoin issuers to keep 60% of reserves in bank deposits | Per Reuters pic.twitter.com/mdoqLqejvc

— Solid Intel 📡 (@solidintel_x) September 22, 2026

The central banks' concern centers on bank financing. Funds that fluctuate with token issuance and redemption do not constitute stable deposit money, according to the filing. A wave of redemptions could potentially drain those funds from banks overnight.

Their alternative calls for a minimum portion of reserves to be held in assets maturing within one to five business days. Reserves represent the cash and bonds an issuer holds to back each token it has sold.

The same submission noted that regulators face "material challenges" enforcing the rules, as non-compliant crypto firms continue to reach EU customers. Separately, the ECB has warned that euro stablecoin expansion could restrict bank lending.

Tether's Reasons for Rejecting the Same MiCA Rule

The deposit requirements are structured in tiers. Standard issuers are obligated to hold 30% of their funds in bank deposits under MiCA. Those classified as significant by the EU must hold 60%.

Tether, the company behind USDT, the world's largest stablecoin, never applied for the license. Chief executive Paolo Ardoino has contended since 2024 that the requirement makes tokens riskier. EU deposit insurance is capped at 100,000 euros.

“When MiCA becomes safer for consumers and stablecoin issuers, then we might reconsider,” he argued.

The two sets of grievances point in opposing directions:

• Ardoino aims to shield the token from banks.
• Central banks seek to shield banks from the token.

Revolut ceased offering USDT in Europe this year. BeInCrypto reported in July that Circle was supporting a MiCA rule change that might enable Tether's return.

The consultation period ends on September 30. The 30% and 60% thresholds remain in effect until EU lawmakers amend MiCA, and Tether continues to hold no EU authorization.