By Hassan Shittu Key highlights: Tether declined to seek a MiCA license primarily due to the rule requiring major stablecoin issuers to hold 60% of reserves in bank deposits The ECB now wants the rule removed because large bank deposit requirements create two-way systemic risk, as stablecoin redemptions could force sudden bank withdrawals Tether’s options […]
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By admin European central banks are asking European Union lawmakers to rethink how stablecoin reserves are regulated under the Markets in Crypto Assets framework, known as MiCA. Their central argument is that fixed quotas for bank deposits can create fragile funding links between stablecoin issuers and commercial banks. Under current rules, issuers must hold at […]