Circle is urging the European Union to recognize foreign-regulated stablecoins and loosen reserve requirements under the Markets in Crypto-Assets Regulation (MiCA). Circle wants a broader liquidity standard to replace mandatory commercial-bank deposits of at least 30% of reserves, rising to 60% for significant tokens. Tether Chief Executive Officer Paolo Ardoino said last month that Tether declined to seek an EU license because of the same requirement. Circle's proposed recognition regime would allow qualifying foreign issuers to distribute tokens through locally licensed institutions without full EU issuer authorization. However, the European Banking Authority has urged tighter controls on foreign multi-issuer structures because critical functions can remain beyond effective EU supervision. Foreign issuers remain subject to existing rules while the European Commission considers possible changes.