Circle calls for greater flexibility in stablecoin reserves in Europe

👀 Where are stablecoin reserves held? Circle wants to change European rules.

Circle is urging the European Union to review MiCA’s reserve requirements. It wants to preserve cross-border stablecoin issuance.

• Replace mandatory minimum bank deposit requirements with more flexible liquidity rules.
• These proposals are not an approved amendment to the rules.

💧 Market and liquidity impact:
In my view, the requested flexibility could give issuers more room to manage liquidity, but it does not in itself mean new funds will flow into the market.

🎯 Most affected: stablecoins and their issuers.

Do you think more flexible reserve rules would support the stablecoin market or increase your concerns about it? 👇

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