ECB, EU central banks suggest dropping stablecoin deposits rule - Reuters

The European Central Bank and EU national central banks have reportedly suggested dropping a rule that would have required stablecoin issuers to hold a portion of their reserves as deposits with central banks. According to Reuters, the proposal reflects ongoing debate over how stablecoin reserves should be structured under the EU's Markets in Crypto-Assets (MiCA) framework.

The discussion matters because reserve requirements shape the economics of stablecoin issuance. Central bank deposits are considered among the safest assets, but they typically yield little or nothing, so a mandate to hold reserves there could raise costs for issuers and influence how tokens are backed. Dropping such a rule could give issuers more flexibility in how they manage reserves, though the exact treatment of stablecoin reserves under MiCA remains a work in progress.

For markets, the key question is whether this signals a lighter-touch approach to stablecoin regulation in Europe, or simply a technical adjustment. Watch for formal proposals, how national regulators respond, and whether other jurisdictions take a similar path.