EU Central Banks Propose MiCA Revisions to Restrict Stablecoin Yields

The European Central Bank and other EU regulators are seeking to limit stablecoins to payment functions by prohibiting rewards from lending, staking, and liquidity mining. Simultaneously, they propose replacing mandatory bank deposit requirements for reserves with liquidity thresholds to protect traditional lenders from potential bank runs. These revisions aim to prevent stablecoins from competing directly with commercial bank deposits. The proposals reflect a broader effort to insulate the traditional financial system from risks associated with stablecoin liquidity volatility.

X, CoinDesk, Cointelegraph public reporting

Price × Evidence /Market Movement

GHO depeg by December 31?

Price & Evidence TimelineEvent markers, price moves, and evidence windows are presented in one reading surface.

Analysis /Evidence Base

ECB's MiCA revision protects banks by restricting stablecoin rewards

Fact confidence: medium

European central banks push to expand stablecoin yield ban to crypto lending and staking

CoinDesk

Fact confidence: medium

ECB, EU cenbanks seek changes in MiCA’s minimum bank deposit for stablecoins

Cointelegraph

Fact confidence: medium

INFERY / RESEARCH VERDICT

Rating

Buy YES

YES undervaluedSlight gapMedium confidence

A day-long break of the peg threshold remains far from GHO's near-par trading, but the market prices that outcome even lower.

“Yes”Fair price range1–14¢

Redemption reserves in the GHO stability module have run thin, leaving a smaller buffer against selling pressure.
GHO spent its first six months of trading below par.
Governance has raised GHO borrowing rates several times in response to depleted redemption reserves.

CURRENT MARKET

GHO depeg by December 31?

⚠Risk: The tail thins instead of deepening: stability-module reserves are replenished and GHO holds at or above the threshold through stress, which would close the underpricing this call rests on.

Next watch: Aave's GHO stewards' next update on stability-module capacity and borrow rates.

View basis

Research verdict is for reference only and does not constitute investment advice.