Tether skipped MiCA license over 60% reserve rule ECB wants scrapped

The European Central Bank and the EU's national central banks, in a 57-page response to the European Commission's MiCA review consultation, want crypto platforms barred from offering lending, borrowing, staking or other products that generate indirect returns on stablecoin holdings, arguing such structures could circumvent MiCA's ban on paying remuneration on stablecoins. The response also proposes scrapping MiCA's rule requiring issuers to hold 30% to 60% of stablecoin reserves as bank deposits, replacing it with liquidity requirements tied to how quickly reserve assets convert to cash (1-5 working days).

Tether CEO Paolo Ardoino said the company refused to apply for a MiCA license because of that 60% bank-deposit reserve rule — the same requirement the ECB now proposes to scrap citing bank stability risks.

• "Electronic money is intended to be used for making payments and not as a means of saving," the ESCB said.
• Tether's explanation highlights how the contested reserve rule shaped major issuers' decisions on EU licensing.