ESMA is asking the European Commission to prohibit every licensable crypto-asset service involving stablecoins that fail applicable MiCA requirements, extending earlier restrictions beyond public offers and trading. The proposal would cover custody and transfers, meaning licensed providers could be barred from safeguarding or moving an existing balance after a trading pair disappears. ESMA’s September 30, 2026 submission does not set an implementation date, withdrawal exception or wind-down mechanism. It is a policy submission rather than enacted law, and any future amendment would need to reconcile the restriction with MiCA rules requiring providers to return clients’ assets. The proposal does not ban personal ownership, freeze tokens or mandate conversion. A study of USDT and USDC trading found a relative shift toward USDC on regulated-facing exchanges around April 1, 2025, but did not measure worldwide demand or affected custodial balances.