The reserve file for stablecoins has returned to the regulatory discussion front in Europe, after the European Central Bank and the central banks in EU member states asked for the removal of the limits imposed on the proportion of deposits within the regulatory framework for crypto-assets known as MiCA. $USDT

According to what has been circulated, the European requirement is to abolish the two thresholds of 30% and 60% related to deposits—percentages that were designed to limit the amount of funds that stablecoin issuers can place in banks.

This move brings back to mind the warning issued by $USDT in 2024 about reserve risks—when it cautioned that such constraints may create pressures on a reserve model based on bank deposits.

Notably, the two parties meet this time on the same outcome from two different angles: first from the regulator’s standpoint, which sees the limits as a burden on the financial system; and second from the issuer’s perspective, which considered those limits a source of risk to the stability of the reserve.

Uncertainty still surrounds the timeline for any actual amendment— and whether the European request will be translated into binding regulatory text or remain within the scope of recommendations, whose contours are not yet clear.

By contrast, the most important question remains unresolved: will raising these limits enhance the resilience of stablecoins in Europe, or will it open the door to new risks in the reserve structure?

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