ECB Urges Broader Stablecoin Yield Ban

The European Central Bank and EU national central banks want crypto platforms barred from offering lending, borrowing and staking that generate indirect returns on stablecoins. In a 57-page response to the European Commission's MiCA review, they argue such yields blur the line between electronic money and bank deposits. They also propose replacing the 30% to 60% bank deposit reserve rule with liquidity-based requirements.