EBA issues opinions on amendments to draft RTS on prudential matters under MiCAR

The European Banking Authority (EBA) has published two opinions in response to the European Commission's (EC) proposed amendments to the draft regulatory technical standards (RTS) concerning the composition and liquidity requirements of the reserve of assets under the Markets in Crypto-Assets Regulation (MiCAR). The EBA considers the EC's proposed changes to be inconsistent with the prudential framework established by MiCAR. The first opinion (EBA/Op/2025/13) addresses amendments to the final draft RTS on liquidity requirements of the reserve of assets. The second opinion (EBA/Op/2025/14) concerns amendments to the final draft RTS on the highly liquid financial instruments (HLFI) with minimal market risk, credit and concentration risk.

The EBA supports the EC's proposed drafting amendments. However, it expresses concerns that the amendments could be interpreted as permitting the investments of issuance proceeds into non-HLFI assets, such as commodities or crypto-assets, classifying all money market funds as HLFI while relaxing concentration and look-through limits, and removing undertakings for collective investment in transferable securities concentration rules. According to the EBA, these amendments are incompatible with MiCAR's prudential framework, particularly Articles 36(1)(b) and 38(1) under MiCAR, as they would introduce material liquidity risks, undermine alignment with banking standards and open the door to regulatory arbitrage. The EBA reaffirms its commitment to closely scrutinising the implementation of MiCAR's prudential framework for asset-referenced and e-money tokens, in particular regarding the liquidity, credit and concentration risks of the reserve of assets, and their implications for financial stability.

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