Circle · European Union · Tether · CryptoSlate
Circle and Tether catch common ground against MiCA’s bank reserve rules
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Circle is urging the European Union to open its Markets in Crypto-Assets Regulation (MiCA) to foreign-regulated stablecoins and loosen reserve rules that constrain global issuers.
Key facts
- Circle said only three of the world’s 25 largest stablecoins by market value, USDC, USDG and EURC, are currently regulated under MiCA, despite roughly 30 e-money tokens securing authorization
- Circle also wants the EU to remove a 35% cap on exposure to a single sovereign and a rule limiting deposits with an individual bank to 1.5% of that lender’s total assets
- Circle is also challenging a requirement that e-money token issuers keep at least 30% of reserves in commercial-bank deposits, rising to 60% for tokens classified as significant
- The Commission’s MiCA review consultation closed Sept. 30, and its findings could lead to legislative amendments
Summary
01 Circle wants MiCA to preserve multi-issuance while creating a second pathway for recognized foreign issuers. 02 The changes could make Europe more competitive for global stablecoin distribution and reduce offshore leakage. 03 EBA concerns over reserve and redemption risks could limit how far Brussels is willing to loosen the rules. The USDC issuer proposed a recognition regime that could let qualifying overseas stablecoin companies distribute tokens in Europe without becoming fully authorized EU issuers, as part of a broader push to bring more of the global market inside the bloc’s regulatory perimeter.