Regulatory Alerts2025-01-01
EBA Opinion on Final Draft RTS to Further Specify the Liquidity Requirements of the Reserve of Assets
The European Banking Authority issued an opinion rejecting European Commission amendments to draft Regulatory Technical Standards that would have permitted asset-referenced token issuers to invest reserve funds in non-highly liquid financial instruments. The EBA argues that allowing investments in commodities or crypto-assets creates significant liquidity risks incompatible with MiCA requirements for immediate cash redemption and undermines prudential consistency with banking regulations. Consequently, the EBA proposes retaining original liquidity buckets based on daily and weekly maturities while accepting only non-substantive editorial changes to the draft standards.
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