The European Central Bank wants to change the rules on MiCA stablecoin reserves in Europe. The bank wants lawmakers to remove a rule from the Markets in Crypto-Assets (MiCA) legislation. On September 22, 2026, the European System of Central Banks (ESCB) submitted its response to the European Commission regarding MiCA.
The ESCB includes the ECB and the 27 national central banks of the European Union. The ESCB said that the bank deposit rule should be removed. This rule currently requires stablecoin issuers to keep 30% of their reserves in bank deposits. For stablecoins considered significant, 60% of reserves must be kept in bank deposits.
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Why Deposit Rule Risks Banks
The ESCB has several reasons for suggesting that the MiCA stablecoin deposit rule should be removed. One reason is the concern for bank funding stability. From the perspective of the stablecoin issuers, the funds kept in bank deposits are considered highly liquid resources.
However, from the perspective of the banks, these deposits are liabilities that must be repaid on demand. The ESCB analyzed Liquidity Coverage Ratio data and found that deposits from electronic money institutions have a 100% outflow rate, while deposits from the general public have a 5% outflow rate.
Source: The Rio Times
During a MiCA stablecoin run, stablecoin issuers withdraw their funds instantly. This leads to a depletion of the liquidity in the banks. The ESCB warned that this risk is concentrated in smaller banks that have to compete for MiCA stablecoin deposits.
The European Systemic Risk Board shared the same concern. The board said that stablecoin issuers with 10 billion euros in reserves would have to keep 6 billion euros in deposits from banks. If 20% of stablecoin holders wanted to withdraw their funds, the banks would be negatively impacted.
Also Read: 12 European banks select Fireblocks for MiCA euro stablecoin
EBA’s Maturity-Based Liquidity Alternative
The ESCB instead supports a different rule for MiCA stablecoin reserves. The rule was proposed by the European Banking Authority in 2024 for Article 36(4) of MiCA. This proposal suggests that significant stablecoins must keep 40% of their funds maturing within one day and 60% maturing within five days.
Non-significant MiCA stablecoin issuers must keep 20% of their funds maturing within one day and 30% maturing within five days. The funds can be kept in assets like overnight reverse repos and short-term sovereign bonds. These assets are eligible for central banks and do not create liabilities for the banks.
Also Read: The GENIUS Act and MiCA: A Two-Tier Future for Stablecoins in 2026
What the Shift Means for Issuers and Markets
The significance of the prospect is that Europe stays divided. The global MiCA stablecoin market was capitalized at over $178bn in September 2026 (defiLlama), with Tether’s USDT and USD Coin (USDC) dominating, solely backed by US Treasury bills and repo. Tether rejected an EMI licence to be called a financial institution, CEO Paolo Ardoino said the rule was “dangerous”.
Source: micalicense
For compliant MiCA stablecoin issuers such as Circle, SG-FORGE from Societe Generale and EURI from Banking Circle, abandoning the quota at once paves the way for EU regulation matching that of the U.S. under the GENIUS Act, and cuts out banks that restrict partial placements of crypto. For banks, it removes unstable deposits that swell liquidity requirements.
For traders, exchanges, custodians, and coders on ethereum, solana and base where euro stablecoins clear, the liquidity-bucket model makes settlement damage less likely to cause meaning. EU-licensed firms deal with far less uncertainty over attestationsand funds would have more clarity over tokenized cash.
Also Read: Euro Stablecoin Market Rebounds Sharply After MiCA Implementation
Regulatory Context
On May 20, the Commission launched its consultation and now closes on Sept. 30 2026, the first review of Regulation (EU) 2023/1114, which governs the use of DLT and transfers of tokens in the EU. The ESCB identified enforcement gaps and pointed to material issues as offshore firms continue to reach EU customers.
Source: LinkedIn
If adopted, the proffered MiCA stablecoin change would need an amendment by the Commission, Parliament, and Council – final standards would be laid down by the EBA as well as a draft likely early 2027 with an 18-month migration.
The debate is intertwined with the ECB’s Pontes wholesale DLT platform launched Sept. 21 and growing demand for tokenized money. The final prescriptive standards will mostly shape whether Europe becomes a globally significant market for regulated MiCA stablecoin issuance or remains shackled to a deposit rule deemed systemic by central banks.
Also Read: Deutsche Börse Integrates SG-FORGE’s MiCA-Compliant Stablecoins for On-Chain Settlement
