The European regulatory framework for crypto-assets is undergoing a critical readjustment regarding the requirements applied to stablecoins. Since the implementation of the MiCA regulation and the mandatory requirement for crypto-asset service provider licensing, the European market has become fragmented. One of the most significant friction points lies in the mandate to hold 60% of financial reserves in the form of traditional bank deposits. Deemed excessively rigid and risky by several industry giants, this clause has led the issuer of the world's leading stablecoin, Tether, to exclude the EU market from its licensing plans, lamenting a framework perceived as punitive for the digital asset ecosystem.
Paradoxically, opposition to this provision no longer comes solely from tech firms, but now also from European Union monetary authorities. The European System of Central Banks, which includes the European Central Bank and the twenty-seven national institutions, has publicly expressed reservations about this obligation. Central bank analysts point out that by forcing the holding of massive volumes of funds in commercial banks, the regulation risks destabilizing the financial structure of banking institutions. Replacing stable retail deposits with capital from stablecoin issuers—which is by nature highly volatile and reactive to market turbulence—could impose a significant systemic risk on the banking sector.
To mitigate these vulnerabilities, central banks are exploring an overhaul of treasury management requirements for fiat-backed crypto-assets. The proposal aims to replace the 60% deposit dogma with an obligation to hold high-quality liquid assets. The new framework would impose a ratio of assets with a maturity of between one and five business days, ensuring near-immediate convertibility without overexposing commercial banks to sudden capital outflows. This increased flexibility could reshuffle the compliance deck for hesitant international players.
Alongside the reserves issue, European regulators are reconsidering their stance on so-called "multi-issuance" stablecoins, which are minted both within and outside the European Union. Previously prohibited by the strict MiCA regulatory framework, these global tokens could gain authorization subject to a legislative amendment. This revised text would introduce a legal equivalence assessment mechanism, ensuring that standards applied abroad offer guarantees comparable to European law. Such an opening would mark a decisive turning point for Europe's connectivity with the global crypto-asset market, while preserving the financial sovereignty of the eurozone.