Circle Pushes Europe To Refine MiCA As Stablecoin Market Enters Its Next Phase
Circle submitted recommendations to the European Commission’s MiCA review, drawing on its experience issuing USDC and EURC under the framework. It wants the EU to preserve cross-border co-issuance with safeguards, create a recognition pathway for foreign-regulated stablecoins, and replace fixed bank-deposit reserve requirements with broader liquidity standards. Circle argues current reserve and concentration rules could raise banking risks and make regulated European stablecoins less competitive, potentially pushing users toward offshore assets. It says about 30 e-money tokens are MiCA-authorised, while only three of the 25 largest stablecoins are regulated under the framework. The Commission has not accepted the proposals, and the consultation does not change existing law.
