Tether CEO Paolo Ardoino said his company declined to apply for an EU license because of the bank deposit clause. Beyond reserve changes, the European System of Central Banks called on the EU to extend MiCA to cover staking, lending, and borrowing while tightening bans on interest payments to prevent the use of decentralized finance to evade regulations.
Wednesday, October 21, 2026
Story
EU Central Banks Push to Scrap 60% Stablecoin Deposit Rule After Tether License Refusal
Crypto29 days ago
The European Central Bank and all 27 EU central banks requested the removal of a mandate forcing stablecoin issuers to park a majority of their reserves in commercial bank accounts. This MiCA rule requires large issuers to hold 60% of reserves as bank deposits, a requirement the central banks argue exposes lenders to sudden withdrawals during volatile flows. The proposed alternative allows reserves to be held in highly liquid assets maturing in 1 to 5 days.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.