On October 3, 2025, the EU implemented specific standards for stablecoin liquidity management under MiCA, enhancing issuer safeguards, as part of efforts by the European Commission and ESMA.
These measures, focusing on systemic risk management, might influence European stablecoin issuers and related projects by increasing their capital requirements and potentially affecting liquidity allocations.
The EU has introduced new liquidity standards for stablecoins as part of the Markets in Crypto-Assets Regulation led by the European Commission, aimed at reinforcing issuer safeguards.
These standards are designed to minimize financial instability risks and offer a structured approach for asset-referenced tokens, with changes projected in issuer investment strategies and market liquidity.
EU Sets New Liquidity Standards for Stablecoins
On October 3, 2025, the EU adopted new technical standards for stablecoin liquidity, reinforcing issuer safeguards. These standards are part of the Markets in Crypto-Assets Regulation led by the European Commission.
The European Commission and ESMA introduced liquidity management standards for stablecoins. These actions enhance the regulatory framework for asset-referenced tokens, aiming to minimize financial instability risks in the crypto sector.
“The RTS set out procedures for identifying, measuring and managing liquidity risk. … They envisage a contingency policy and mitigation tools and outline minimum aspects of liquidity stress testing.” — European Commission, Official Journal
Stablecoin Issuers Face Stricter Capital Requirements
Market participants are adjusting to the new standards. Increased capital requirements for stablecoins may lead to a shift in issuer investment strategies and potentially affect market liquidity.
Historically, similar regulations prompt changes in capital allocation. The MiCA standards may influence governance tokens and DeFi projects reliant on stablecoins. Additional liquidity could move from unregulated tokens to compliant ones.
EU Stablecoin Rules Echo MiFID II Framework
The EU’s stablecoin rules echo past frameworks like MiFID II, fostering greater institutional adoption. Similar SEC actions in the U.S. affected temporary stablecoin liquidity, prompting shifts to less-regulated tokens.
Experts anticipate changes similar to e-money regulations, predicting enhanced on-chain transparency for stablecoin reserves and potential operational shifts for DeFi protocols integrating regulated assets.
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