The Single Resolution Board has responded to the European Commission’s targeted review of the Markets in Crypto-Assets Regulation, proposing stronger safeguards for stablecoin-related risks to bank resolvability and a proportionate crisis management framework for significant tokens issued by non-credit institutions. It warns that stablecoin issuance and reserve arrangements can expose credit institutions to liquidity, operational and reputational risks, while the current framework relies mainly on recovery, redemption and liquidation measures for systemic non-bank issuers. The proposals include targeted information sharing on material token exposures, operational dependencies and concentration risks, using existing reporting where possible. The board also calls for closer coordination between MiCA supervisors and resolution authorities, including notification when redemption plans are activated. It seeks clearer interaction between MiCA, the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation on reserve deposits, asset segregation, insolvency protections, bankruptcy remoteness, claim ranking, depositor protection and bail-in treatment. The response highlights the risk that reserve deposits could become a volatile and concentrated source of bank funding, with stablecoin redemptions triggering rapid withdrawals and shortening the time available for resolution action. For significant asset-referenced and electronic money tokens issued by non-banks, the board proposes assessing a tailored crisis management or resolution regime rather than relying solely on liquidation. It also supports clearer redemption timeframes and safeguards for multi-issuer arrangements, particularly where reserves or issuing entities are located outside the European Union.

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