European Central Bank and EU national central banks said they oppose a proposal under the MiCA crypto rules that would require major stablecoin issuers to hold at least 60% of reserves in bank deposits. They said the measure could expose banks to stablecoin market volatility and weaken deposit stability. According to PANews, the central banking system suggested instead that a set share of reserve assets should be held in short-term assets maturing within one and five working days.

The central banks also said that although MiCA has taken effect, non-compliant crypto firms can still reach EU customers. They said enforcement faces major challenges and creates investor protection risks.