Circle Pushes Back on MiCA's Bank-Deposit Mandate for Stablecoins
Circle is pressing the European Commission to revise MiCA’s stablecoin rules, arguing they regulate many issuers in Europe but still leave most large global stablecoins outside the bloc’s perimeter. Circle says only three of the top 25 stablecoins are MiCA-regulated and wants the EU to preserve “multi-issuance,” which would let a globally circulating token be co-issued by an EU entity and a foreign-regulated issuer. Its main criticism targets reserve rules. MiCA requires e-money token issuers to keep at least 30% of reserves in commercial bank deposits, and 60% for “significant” tokens. Circle says this raises banking-sector risk and should be replaced with a more flexible liquidity requirement. It also wants limits on sovereign exposure and bank concentration removed. The request comes as the EU prepares a broader MiCA review and amid growing global competition over stablecoin influence.
