EU regulators aim to shift stablecoin oversight from bank-deposit mandates to liquidity thresholds, citing concerns that rapid outflows could destabilize the broader banking sector.
ECB and EU central banks propose replacing MiCA's stablecoin bank-deposit requirements with liquidity thresholds, warning that sudden withdrawals could strain lenders, creating regulatory uncertainty for stablecoin issuers.
The European Central Bank and regional central banks are pushing to overhaul MiCA stablecoin regulations. The proposal seeks to replace mandatory bank-deposit requirements with new liquidity thresholds to mitigate systemic risks posed by sudden, large-scale capital withdrawals from lenders.
The ECB fears that existing bank-deposit mandates could lead to liquidity crises if stablecoin holders initiate sudden, massive withdrawals, potentially destabilizing the lenders holding those deposits.