Circle Seeks Changes to EU Stablecoin Reserve Rules
Circle said fixed deposit thresholds expose issuers to bank risk and could limit access to liquid assets needed for redemptions.
- Circle urged the European Commission to replace mandatory bank-deposit requirements for stablecoin reserves with flexible liquidity rules in its response to the Markets in Crypto-Assets Regulation consultation.
- Citing its 2023 experience at Silicon Valley Bank, Circle warned that forced bank deposits create systemic vulnerabilities; $3.3 billion in USDC reserves were held at the lender when it failed.
- The company also asked the Commission to preserve "multi-issuance" models, where European Union-authorized entities and foreign-regulated counterparts jointly issue stablecoins while maintaining fungibility across jurisdictions.
- European central banks echoed these concerns in their own consultation response, suggesting regulators prioritize minimum proportions of reserve assets that mature within one to five working days.
- Separately, the Hyperliquid Policy Center petitioned regulators to classify crypto perpetual futures under the Markets in Financial Instruments Directive , arguing requirements should reflect economic features rather than blockchain technology.
31 Articles
31 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…
Circle Pushes Back on MiCA: Only 3 of Top 25 Stablecoins Comply Regulations ETHNews
Circle filed its response to the European Commission’s MiCA review on October 1. The company wants fixed bank-deposit quotas for stablecoin reserves replaced with liquidity-based tests. Europe’s central banks support removing the deposit quota but oppose looser rules for globally issued stablecoins. Only three of the world’s 30 largest stablecoins currently comply with MiCA. Circle, […]
Bitcoin.com
http://coinprofitnews.comCircle Urges EU to Scrap Strict Bank Deposit Rules for Stablecoins
The issuer of the second-largest stablecoin in the crypto world proposed a new regime for foreign-regulated stablecoins, where international issuers would be primarily supervised in their home jurisdiction with measures equivalent to those applied in the EU, allowing locally licensed institutions to handle distribution. Circle Proposes New Foreign Stablecoin Regime Under MiCA Circle, the issuer […]
Circle asked the European Commission to review the European rules for stablecoin reserves, proposing to replace the fixed bank deposit obligations with a liquidity-based test. The request was submitted on October 1 in a summary of Circle's response to the Commission's consultation on MiCA regulation. The USDC issuer [...]
Two years after the introduction of the MiCA rules, Circle calls for targeted adjustments to the reserve requirements for stablecoins. Why the EU Commission should act. Source: BTC-ECHO BTC-ECHO
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