The European Central Bank and EU national central banks have proposed revising MiCA’s stablecoin reserve requirements as part of a European Commission consultation, Reuters reported on Sept. 22, 2026. They want to scrap mandatory bank-deposit thresholds because rapid withdrawals during mass stablecoin redemptions could put additional pressure on banks.

MiCA requires stablecoin issuers to hold 30% of their reserves in bank deposits, with the threshold rising to 60% for significant issuers. The ESCB, which includes the ECB and 27 national central banks, instead proposed focusing on asset liquidity and setting minimum reserve shares available through assets maturing within one and five business days.

Central banks cite funding risks

The proposal said stablecoin issuers’ deposits may be less stable than traditional retail deposits and could leave banks quickly if crypto-market conditions deteriorate.

“If reserves are held as bank deposits, stablecoins can alter banks’ funding structures by replacing relatively stable retail deposits with deposits from stablecoin issuers, which tend to be less stable and more sensitive to market conditions,” the central banks’ document said.

The ESCB also cited “significant difficulties” in ensuring compliance with MiCA. Despite a June 2026 deadline to obtain a license or wind down EU operations, some non-compliant crypto companies continue to serve European users, creating risks for investor protection, according to the central banks.

Tether previously opposed the requirement

The central banks’ position partly echoes arguments made by Tether CEO Paolo Ardoino, who criticized the bank-deposit requirement in 2024 and has maintained that view.

“Europe’s central banks want Brussels to delete a MiCA rule on stablecoin reserves. It forces large issuers to keep 60% of that money in commercial banks. Tether refused an EU license over the same clause,” Ardoino wrote in a Sept. 22, 2026 post.

Tether, the company behind USDT, did not apply for a MiCA license. Ardoino linked that decision in part to the requirement to keep up to 60% of reserves in banks.

He previously said the model could create systemic risk for stablecoin holders if the banking system encountered problems, calling the rules “very dangerous for stablecoins.” In separate public comments, Ardoino said that “when MiCA becomes safer for consumers and stablecoin issuers,” Tether could revisit its decision.

The proposed changes have not been adopted. The EU consultation remains underway, and MiCA’s 30% and 60% bank-deposit requirements will remain in place unless legislative changes are introduced.

Source: Incrypted