Circle urged the European Commission to replace mandatory minimum bank deposits for stablecoin reserves with a more flexible liquidity requirement. According to NS3.AI, Circle said the current deposit rules expose issuers to banking-sector credit and counterparty risks.

Circle said MiCA requires e-money token issuers to hold at least 30% of reserves in commercial bank deposits, rising to 60% for significant issuers. The company also called on the Commission to preserve cross-border co-issuance of stablecoins.