European central banks, including the ECB, are calling for the removal of a MiCA requirement forcing stablecoin issuers to hold at least 30% of reserves in bank deposits, rising to 60% for significant stablecoins. This position validates warnings raised in 2024 by Tether CEO Paolo Ardoino, who cautioned about liquidity risks during mass withdrawals. USDT, with a market capitalization of approximately $183 billion representing 63% of the stablecoin market, still lacks regulatory approval in Europe and has been removed from several regulated European trading platforms. The proposed amendment must still go through the European rulemaking process before adoption.
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