Circle urges EU to revise stablecoin reserve rules in MiCA review
Summary
Circle urged the European Commission to revise MiCA reserve rules, arguing that mandatory bank-deposit requirements expose stablecoin issuers to banking-sector credit and counterparty risk, as shown when USDC briefly lost its peg after reserves were tied to Silicon Valley Bank. Circle backed replacing fixed deposit minimums with a more flexible liquidity requirement, aligning with the ECB. It also opposed reserve concentration limits and supported preserving “multi-issuance” arrangements between EU and foreign-regulated issuers to avoid pushing users offshore. Other respondents sought clearer token classification, proportional stablecoin safeguards, and simpler cross-border issuance rules.
