European central banks want the European Union to tighten crypto rules, especially around stablecoins, foreign-currency tokens, and crypto firms. The push comes as Brussels reviews the Markets in Crypto-Assets Regulation, or MiCA.
Moreover, the European System of Central Banks wants regulators to strengthen oversight across the rapidly expanding digital-asset market. The proposal could reshape how stablecoin issuers manage reserves and compete within Europe.
Stablecoin Reserve Rules Face Changes
Central banks want to remove MiCA’s requirement for issuers to keep 30% to 60% of reserves in bank deposits. Instead, issuers could hold more highly liquid assets, including Treasury bills and repurchase agreements. Consequently, regulators could reduce issuers’ reliance on commercial banks while preserving quick access to reserve funds.
Additionally, central banks want a broader ban on stablecoin interest payments. They also seek stronger safeguards for significant stablecoins and new powers over tokens linked to foreign currencies. Significantly, the proposals could affect dollar-pegged tokens across European markets.
Regulators Seek Stronger Oversight
The central banks also support EU-level supervision for crypto companies. Besides, they want tougher safeguards around staking activities.
MiCA has governed Europe’s crypto sector since December 2024. The final transition deadline ended July 1, affecting major operators such as Binance. Meanwhile, the European Commission’s MiCA review remains open until September 30.
Related: Binance Faces U.S. Probe Over Possible Iran Sanctions Violations
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