Circle Seeks Changes to EU Stablecoin Reserve Rules
European issuers say regulated dollar tokens would support cross-border payments and settlement, while Circle says only 3 of the top 30 stablecoins comply with MiCA.
- On Thursday, stablecoin issuer Circle urged the European Commission to revise MiCA reserve requirements, arguing that mandatory commercial bank deposit rules expose issuers to credit and counterparty risks.
- Current MiCA framework mandates that e-money token issuers hold at least 30% of reserves in commercial bank deposits, with significant issuers required to maintain 60% in such accounts.
- Circle also challenged a 35% cap on sovereign issuer exposure and a 1.5% ceiling on deposits per bank, warning these restrictions could push European users toward offshore providers.
- Separately, the Hyperliquid Policy Center urged the European Commission to classify crypto perpetual futures under the Markets in Financial Instruments Directive, or MiFID II, rather than new rules.
- Stable Mint CEO James Bennett emphasized that European businesses require dollar liquidity for global payments, stating, "Europe cannot wish away dollar demand" despite regulatory efforts.
24 Articles
24 Articles
Circle urges MiCA changes as only 3 of top 30 stablecoins comply
Circle has urged EU policymakers to revise MiCA’s stablecoin issuance and reserve rules after its EU policy director said only three of the world’s 30 largest stablecoins comply with the framework. Circle, in its Oct. 1 policy submission, called for…
Latest Circle urges EU to revise stablecoin reserve rules in MiCA review in Cryptocurrency
Stablecoin issuer Circle urged the European Commission to revise reserve requirements in its response to a consultation on reviewing the Markets in Crypto-Assets Regulation (MiCA). In Thursday’s summary of its response, the USDC and EURC issuer said mandatory bank-deposit requirements expose stablecoin issuers to banking-sector credit and counterparty risks. Circle faced those risks firsthand in
Circle Pushes Back on MiCA's Bank-Deposit Mandate for Stablecoins
The USDC issuer told the European Commission that MiCA's reserve mandates and concentration caps keep the largest global stablecoins outside Europe's perimeter—siding with the ECB in calling for more flexible rules.
The Circle, the issuer of the stablecoin USDC, published a note on Thursday (1st) requesting that the European Commission review certain rules imposed on the sector in which it operates. One of the main criticisms is the requirement for stablecoin issuers to maintain a minimum of 30% of the ballast of these assets in commercial banks. The value goes up to [...] Source: Circle requests changes in the MiCA regulation for stablecoins See more about…
European Issuers Push Dollar Stablecoins as USD Demand Outpaces Euro Options
Europe’s stablecoin issuers want dollar-backed digital assets. Not someday. Now. The argument is pretty straightforward: the euro stablecoin, whatever its… Read the original on European Stablecoin Issuers Demand Dollar Options to Compete Globally. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
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