ECB seeks MiCA reserve change flagged by Tether in 2024 - Crypto News

The European Central Bank has raised concerns about reserve requirements under the Markets in Crypto-Assets (MiCA) regulation — an issue Tether first flagged in 2024. At stake is how stablecoin issuers must hold and structure the assets backing their tokens, a core pillar of MiCA's consumer-protection framework.

The timing matters. MiCA was designed to bring stablecoin issuers under one of the world's first comprehensive licensing regimes, and reserve rules sit at its centre. Any revision could affect how large issuers, including Tether, structure their holdings and where they custody reserves. Tether's earlier warning suggests the industry saw friction between current requirements and operational reality before regulators formally weighed in.

For markets, the key question is whether changes loosen or tighten the rules. Looser requirements could ease compliance costs for issuers; stricter ones could raise them and influence where stablecoin activity is based. Watch for official ECB statements and any legislative proposal, since clarity — or its absence — tends to shape sentiment around euro-denominated and dollar-pegged stablecoins alike.