Regulators rewrite the stablecoin rulebook
The European Central Bank, together with a coalition of EU central banks, has signaled a shift away from MiCA’s fixed minimum bank‑deposit requirement for stablecoins. Instead, they propose a liquidity‑threshold model that scales with the size and usage of each token.
The risk they’re addressing
Sudden mass withdrawals—so‑called “bank runs”—pose systemic risk when stablecoins are tethered to traditional banks. By tying required reserves to real‑time liquidity, regulators hope to ensure that issuers can meet redemption demands without destabilising the broader financial system.
Industry reaction
Stablecoin issuers argue that the new framework could increase compliance costs and limit innovation, especially for smaller projects that lack deep liquidity pools. Larger players, however, view the move as a path toward greater legitimacy and integration with the Eurozone banking sector.
What’s next?
The proposal will undergo a consultation phase before formal adoption. Market participants should begin stress‑testing their liquidity models and engaging with policymakers to shape the final ruleset.
