ECB Suggests Dropping Stablecoin Deposit Rules
European Central Bank and national EU banks recommend removing the requirement for stablecoin issuers to hold reserves as bank deposits to protect financial stability. The central banks argue these deposits could leave lenders exposed to sudden runs on stablecoins.
European central banks proposed dropping the rule requiring stablecoin issuers to hold a minimum 30% to 60% of reserve assets in bank deposits. The European System of Central Banks outlined the recommendation in a Tuesday response to MiCA regulatory consultations. Regulators aim to prevent stablecoin runs from destabilizing traditional commercial lending structures.
