European central banks are proposing a two‑pronged regulatory overhaul that would widen the existing ban on stable‑coin yields to cover indirect earnings from lending and staking, and replace the Markets in Crypto‑Assets Regulation’s (MiCA) 60% cash‑deposit requirement with tighter liquidity thresholds. The European Central Bank (ECB) and a coalition of EU national central banks presented the proposals to Brussels this week, warning that the current framework leaves the bloc vulnerable to “shadow banking” activity in the fast‑growing crypto‑lending market.
Background on MiCA’s stablecoin safeguards
MiCA, the EU’s first comprehensive set of rules for crypto‑assets, requires issuers of electronic money tokens – commonly known as stablecoins – to hold at least 60% of the token’s value in cash or central‑bank‑grade deposits. The intent is to ensure that stablecoins can meet redemption demands and to limit systemic risk. The rule, however, has been criticised for focusing on the composition of assets rather than on the speed and certainty with which those assets can be liquidated.
Extending the yield ban to indirect crypto earnings
According to CoinDesk, central bankers argue that “indirect yield structures blur the line between electronic payment tokens and commercial bank deposits, distorting financial system competition.” They contend that crypto platforms offering lending or staking services generate de‑facto interest on stablecoins, even when the tokens themselves do not carry an explicit rate. By extending the ban to these activities, regulators hope to prevent stablecoins from being used as a back‑door for deposit‑like products that escape traditional banking oversight.
"The ban should cover indirect yield structures that blur the line between electronic payment tokens and commercial bank deposits," the ECB‑led proposal reads, CoinDesk reported.
Cointelegraph adds that the ECB and EU central banks plan to replace the 60% deposit rule with a set of liquidity thresholds calibrated to the size and risk profile of each stablecoin issuer. The proposed thresholds would require issuers to demonstrate that they can meet large‑scale withdrawal scenarios without resorting to fire‑sale of assets, thereby mitigating the “run risk” that regulators say could strain lenders in a market characterised by rapid inflows and outflows.
The Crypto Times highlighted that the central banks also want Brussels to scrap the 60% deposit rule entirely, arguing that it is an outdated metric that does not reflect the liquidity realities of digital assets. The suggested liquidity thresholds would be dynamic, taking into account the composition of assets, market depth, and the speed at which they can be converted to cash.
If adopted, the amendments would tighten the regulatory perimeter around crypto‑lending platforms, staking providers, and other services that currently generate yield on stablecoins without being classified as banks. The changes could force many crypto firms to either restructure their product offerings, raise additional high‑quality liquid assets, or seek a banking licence to continue operating under the new rules.
The proposals are slated for discussion in the European Parliament and the Council of the EU later this year. Both bodies are expected to weigh the potential impact on innovation against the need for financial stability as the crypto market continues to expand across Europe.
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Live data: CoinGecko — 2026-09-22 15:22 UTC
