Circle and Tether find common ground against MiCA’s bank reserve rules
Summary
Circle has urged the EU to revise MiCA so qualifying foreign-regulated stablecoin issuers can serve European users without full EU authorization. It proposes an equivalence process for overseas regimes, continued multi-issuance with EU entities, and replacing reserve rules on bank deposits, sovereign exposure and concentration with broader liquidity standards. Circle argues current requirements raise counterparty risks and may push users toward offshore tokens. The EBA has called for tighter safeguards on third-country structures, citing limits to EU oversight of reserves and redemptions. The Commission’s MiCA review consultation has closed, but any changes would require legislative amendments; existing rules remain in force.
