ECB Asks Brussels to Scrap the MiCA Reserve Rule That Kept Tether Out of the EU

The European Central Bank and the national central banks of the European System of Central Banks have asked for changes to the bloc’s crypto rulebook⁹. They propose removing MiCA’s 30 per cent and 60 per cent bank deposit reserve requirement and allowing highly liquid assets such as Treasury holdings instead^2,6. The ECB and ESCB also want stricter MiCA enforcement, new liquidity rules for stablecoin reserves and centralised supervision of crypto firms operating in the bloc⁴, and have pushed for a broader ban on stablecoin rewards¹⁰.

The reserve proposal lands on the same point Tether has objected to. Chief executive Paolo Ardoino said the company will not apply for an EU MiCA licence because of the requirement that major stablecoin issuers hold at least 60 per cent of their reserves in bank deposits^1,5,7. European central banks are now seeking removal of the rule nearly two years after Tether raised concerns about it³, echoing a reserve-risk warning the company made in 2024².

Why it matters to investors

Stablecoin reserve rules are now a Treasury market question. The US Treasury has said stablecoin issuers hold about 200 billion dollars in short-term Treasuries and other government securities, and that the amount is likely to grow⁸.

The European proposal would push reserves further in that direction by permitting highly liquid assets in place of bank deposits⁶. The regulators’ stated concern is the reverse of the original rule’s intent: concentrating issuer reserves in bank deposits creates a run channel through the banking system rather than away from it^2,3.

What to watch

Whether the Commission reopens MiCA is the first gate. A central bank request is not an amendment, and the rule stands until it is changed^6,9.

Watch the rewards ban, which runs in the opposite direction to the reserve relief and would restrict what issuers can pay holders^4,10. Watch the US comparison: legislation there failed in a 49 to 50 Senate procedural vote, leaving the two jurisdictions’ rulebooks diverging on the same questions¹⁰. And watch Tether itself, since ECB support for its reserve argument does not resolve its EU position, which remains unsettled even with the concern acknowledged³.