Regulations
By Jean-Luc Maracon
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MiCA Under Pressure Since Its Launch. MiCA has been in effect since 2025, but discussions about its blind spots have never really ceased.
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What This Means for Issuers. For stablecoin issuers operating in Europe, it's a significant change if it goes through.
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The European Central Bank (ECB) is making a bold move. The institution wants to completely eliminate the requirement for stablecoin issuers to place a portion of their reserves…
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Here's the current situation: MiCA, the European regulation on crypto assets established in 2025, currently requires stablecoin issuers to keep 30% of their reserves in the form…
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The logic behind this is paradoxically to protect the banks. Authorities fear that in the event of a panic over a major stablecoin — like a massive rush of users wanting to…
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The problem identified by the ECB is quite specific: the current requirement creates a structural dependency between stablecoin issuers and commercial banks.
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Hence the proposal to switch to short-term liquid assets. Assets that can be sold quickly, without going through a bank, without creating additional pressure on bank balance…
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More context: ECB Launches Pontes for Tokenized Asset Settlements Using Central Bank Money
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Related reading: SoFiUSD aims for $25 billion in card volume on the Mastercard network
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For stablecoin issuers operating in Europe, it's a significant change if it goes through. Managing 60% of their reserves in bank deposits is restrictive.
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But for now, this remains a recommendation. Approval from the competent authorities is necessary.
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What is clear is that the EU's central banks are pushing in the same direction. The ESCB supports the modification.
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Europe has been seeking a balance for some time between allowing innovation in the cryptocurrency sector and protecting the financial system from disruptions that could come from…
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Read also: Capital.com Seeks Head of Risk Amid Uncertain FCA Registration for Capital Vault UK
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Also read: Google and Apple hire crypto experts as demand for digital assets rises
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