European Central Bank calls for tougher EU crypto rules and stablecoin interest ban

Europe’s central banks have made their position clear: the current rules governing crypto aren’t strict enough, and they want them tightened before the next phase of the continent’s landmark regulatory framework takes hold. The European Central Bank, acting through the broader European System of Central Banks, submitted a formal response to the European Commission’s ongoing review of the Markets in Crypto-Assets Regulation on September 22, 2026. The response calls for retaining the existing ban on interest payments for stablecoins, introducing new liquidity-based reserve requirements, and creating centralized EU-level supervision for the largest crypto firms operating in the bloc. What the ECB actually wants The stablecoin interest ban sits at the heart of the ESCB’s position. Under MiCA, issuers of electronic money tokens and asset-referenced tokens are already prohibited from paying yield to holders. The ECB wants that ban to stay, and potentially expand. The ESCB also flagged what it called “material challenges” in enforcement, pointing to crypto firms operating within the EU that are not fully compliant with existing rules. The proposed remedy is enhanced supervisory powers and...