The European Central Bank (ECB) and the European System of Central Banks (ESCB) have asked Brussels to keep, and if necessary tighten, the EU ban on paying yield on stablecoins, and to scrap the rule that requires stablecoin issuers to hold part of their reserves as bank deposits. The positions are set out in the ESCB’s response to the European Commission’s targeted consultation on the review of the Markets in Crypto-Assets Regulation (MiCAR). It is a recommendation to the Commission, not a change in law.
On yield, the ESCB says the ban should cover both direct and indirect forms of remuneration and should also reach services outside MiCAR, such as crypto lending, borrowing and staking. It points to loyalty-programme benefits and liquidity-mining incentives in decentralised finance as examples of indirect returns, and describes maintaining the ban as a “clear legislative priority”. Its reasoning is that stablecoins issued as electronic money are meant for making payments, not for saving.
On reserves, MiCAR currently requires issuers to hold at least 30% of reserve assets as deposits at credit institutions, rising to 60% for stablecoins classed as significant. The ESCB wants that fixed floor removed, citing the risk that a sudden withdrawal of large deposits could strain the banks holding them. In its place it proposes minimum shares of reserves maturing within one and five working days, using the European Banking Authority’s draft technical standards as a starting point: at least 40% and 60% for significant stablecoins, and 20% and 30% for others. The ESCB also recommends keeping token holders’ unconditional right to redeem, with no minimum redemption amount.
For people who use stablecoins to move money in Europe, the practical effect would depend on what the Commission proposes. A wider yield ban would mainly touch holders who earn returns through platform lending or staking products, while the reserve change concerns how issuers back the tokens rather than how payments work. The consultation closes on 30 September, and the Commission’s review report, which may carry a legislative proposal, is due by mid-2027, according to Unchained’s report. Any legislative change would still need approval from EU lawmakers.
References
European System of Central Banks – ESCB Response to the European Commission’s Targeted Consultation on MiCAR / Unchained – ECB and EU Central Banks Want the Stablecoin Yield Ban to Reach Lending and Staking
