ECB proposes new EU stablecoin liquidity rules on reserve access
The European Central Bank (ECB) is looking to shake up how stablecoins are regulated in the European Union.
Instead of making issuers keep at least 30% of their reserves, or 60% if the crypto is a stablecoin, in bank deposits, they're proposing new liquidity rules that focus on how quickly these reserves can be accessed.
The goal? To make the system safer and help the growing crypto market run more smoothly.
ECB proposal aligns with EBA thresholds
The new plan suggests stablecoin issuers keep part of their reserves in assets that can be turned into cash within one and five business days, like overnight reverse repos or short-term government bonds.
This lines up with European Banking Authority 2024 proposed rules, which say major stablecoins should hold at least 40% of their reserves in one-working-day maturity assets and 60% in five-working-day maturity assets, while non-major stablecoins need 20% and 30% respectively.
These changes come as MiCA-compliant euro-stablecoins have exploded: up 128% in value and trading volume jumping over 43.1%.