On the 10th of October 2025, the European Banking Authority published two Opinions in response to the European Commission’s proposed amendments to the draft Regulatory Technical Standards (RTS) outlining the composition and the liquidity requirements of the reserve of assets under Regulation 2023/1114/EU (MiCAR). The European Commission’s amendments could be seen as allowing investment of issuance proceeds into non-highly liquid financial instruments (non-HLFI), classifying all money market funds as HLFI whilst loosening concentration and look-through limits, and removing undertakings for collective investment in transferable securities concentration rules. The EBA considers such substantive amendments inconsistent with Articles 36(1)(b) and 38(1) of MiCAR, since they would introduce material liquidity risk, weaken alignment with the banking liquidity framework, and leave ground for regulatory arbitrage.
