Commission reviews MiCA, flags global stablecoins and reserve ringfencing

The European Commission launched two parallel consultations on the Markets in Crypto-Assets Regulation, due 30 August, with particular depth in stablecoin provisions. The targeted consultation addresses multi-jurisdiction issuers where EU holder reserves sit ringfenced but local balances could drain during cross-border redemption runs, a scenario the ECB and Parliament have tracked for some time.

The review reflects legislative movement elsewhere. Questions probe whether the EU’s blanket interest ban should be revisited in light of ongoing US debate, and whether systemic issuers should hold a proportion of reserves at the central bank with possible lender-of-last-resort access, echoing UK and US frameworks. A further item asks if banks issuing stablecoins should be required to segregate reserves through separate subsidiaries, matching UK and US requirements, though several EU bank-linked issuers have already adopted separate structures voluntarily.

The consultation spans MiCA’s full scope but weights stablecoin mechanics and multi-jurisdiction exposure more heavily than other asset classes, signalling where the Commission sees operational gaps or cross-border fragility.