[European Central Bank Opposes Mandatory Stablecoin Reserves as Bank Deposits] According to Reuters, the European Central Bank and national central banks within the EU have expressed opposition to requiring major stablecoin issuers to hold at least 60% of their reserve assets in the form of bank deposits during consultations on the crypto asset regulatory framework MiCA. They argue that such a requirement could expose banks to stablecoin market volatility and undermine deposit stability. The central banking system suggests instead mandating that a certain proportion of reserve assets consist of short-term assets maturing within 1 to 5 business days. Additionally, the central banks noted that despite MiCA taking effect, non-compliant crypto firms can still access EU customers, posing "significant challenges" to regulatory enforcement and creating risks to investor protection.