Circle Seeks Changes to EU Stablecoin Reserve Rules
Circle said only 3 of the top 30 stablecoins meet MiCA and urged a liquidity-based reserve model to ease cross-border issuance.
- In an October 1 submission, the Hyperliquid Policy Center urged the European Union to classify perpetual futures under MiFID II, arguing regulators should focus on economic features rather than blockchain technology.
- Circle urged EU policymakers to revise MiCA stablecoin rules, with Patrick Hansen, Circle's director of EU strategy and policy, noting that "only 3 of the top 30 are MiCA-compliant today."
- The company challenged European Banking Authority technical standards, specifically opposing a 35% ceiling on sovereign issuer exposure and a 1.5% limit on deposits at individual banking counterparties.
- For foreign-regulated stablecoins, Circle proposed a recognition model inspired by the U.S. GENIUS Act, combining a European Commission assessment with an EBA decision to recognize issuers.
- The European Commission previously warned that excluding foreign stablecoins could encourage purchases from offshore parties without MiCA protections, as regulators review liquidity requirements covering one to five days.
19 Articles
19 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…
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…
Circle requested that MiCA's 30% and 60% bank deposit minimum ratios be replaced with liquidity requirements, citing the 2023 SVB experience as justification.
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