Circle Pushes EU to Rewrite Stablecoin Reserve Rules 💵
Circle has urged the European Commission to change parts of the EU’s MiCA framework governing stablecoin reserves. The company wants regulators to replace fixed bank-deposit requirements with liquidity-based standards, arguing that the current rules could constrain how issuers manage reserve assets.
Circle’s proposal targets requirements that can force e-money token issuers to hold 30% of reserves as bank deposits, rising to 60% for significant stablecoins. 🏦 The company also wants the EU to preserve the ability for stablecoins to be issued across multiple jurisdictions.
The push comes as Circle seeks to shape the next stage of Europe’s digital-asset regulatory framework. USDC and EURC are among the few major stablecoins currently compliant with MiCA, while Circle says only three of the world’s 30 largest stablecoins meet the EU’s requirements. ⚖️
$CRCL
$CRCLB
Circle has urged the European Commission to change parts of the EU’s MiCA framework governing stablecoin reserves. The company wants regulators to replace fixed bank-deposit requirements with liquidity-based standards, arguing that the current rules could constrain how issuers manage reserve assets.
Circle’s proposal targets requirements that can force e-money token issuers to hold 30% of reserves as bank deposits, rising to 60% for significant stablecoins. 🏦 The company also wants the EU to preserve the ability for stablecoins to be issued across multiple jurisdictions.
The push comes as Circle seeks to shape the next stage of Europe’s digital-asset regulatory framework. USDC and EURC are among the few major stablecoins currently compliant with MiCA, while Circle says only three of the world’s 30 largest stablecoins meet the EU’s requirements. ⚖️
$CRCL
$CRCLB