The European Banking Authority is also calling for the EU's upcoming review of MiCA to expand oversight to crypto lending and firms facilitating access to DeFi protocols. Along with the European System of Central Banks, the EBA has recommended extending the framework to cover staking and borrowing, while also seeking tighter regulations for stablecoin schemes issued by third-country entities.
Tuesday, October 20, 2026
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EU Central Banks Plan to End 60% Reserve Rule That Blocked Tether
Crypto27 days ago
The European Central Bank and the national central banks of the 27 EU member states recommend that large stablecoin issuers maintain their reserves in assets maturing in one to five days. This proposal would remove a MiCA requirement forcing those companies to keep at least 60% of their funds in commercial bank deposits, as regulators now warn that volatile stablecoin flows could expose banks to sudden withdrawals and systemic instability. Tether CEO Paolo Ardoino stated that Tether refused to apply for a MiCA license specifically because of this deposit rule, though the proposed change has not yet been adopted.
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