Circle is urging the European Union to recognize foreign-regulated stablecoins and ease reserve requirements under the Markets in Crypto-Assets Regulation, or MiCA. According to NS3.AI, the company wants a broader liquidity standard to replace the current rule requiring commercial-bank deposits of at least 30% of reserves, rising to 60% for significant tokens.

Circle’s proposal would allow qualifying foreign issuers to distribute tokens through locally licensed institutions without full EU issuer authorization. The move comes as Tether Chief Executive Officer Paolo Ardoino said last month that Tether declined to seek an EU license because of the same reserve requirement.

The European Banking Authority has called for tighter controls on foreign multi-issuer structures, warning that critical functions can remain outside effective EU supervision. Foreign issuers remain subject to existing rules while the European Commission considers possible changes.