European Central Bank Proposes Replacing MiCA Stablecoin Bank-Deposit Rules With Liquidity Standards - NewsCord

The European Central Bank has proposed replacing the bank-deposit treatment of stablecoin reserves under the Markets in Crypto-Assets (MiCA) framework with dedicated liquidity standards. Under the current approach, stablecoin issuers' reserves are treated in a way that reflects bank-deposit rules; the ECB's proposal would instead apply liquidity requirements tailored to how those reserves actually behave.

The distinction matters because reserve treatment shapes how much capital and how much liquid, high-quality collateral an issuer must hold against outstanding tokens. A liquidity-based regime could change the cost structure for issuers and influence the composition of reserves — for example, the balance between cash, deposits, and short-term government debt. It may also affect how stablecoin holdings are viewed by banks and other regulated institutions that interact with the sector.

The proposal is not yet final, so its practical effect depends on the legislative process and any amendments. What to watch: whether EU lawmakers adopt the liquidity approach, how it aligns with existing MiCA rules, and whether other jurisdictions signal similar changes. For now, the direction of travel is toward treating stablecoin reserves on their own terms rather than by analogy to bank deposits.