*MiCA review consultation closed Sep 30 — Circle submission (Patrick Hansen EU policy lead): as largest MiCA EMT issuer USDC/EURC, first major to comply July 2024*
$MAGMA $SAND $NIGHT - *Core ask: Remove fixed deposit floor — MiCA now: e-money token issuers min 30% reserves in commercial bank deposits, 60% if "significant" by EBA — Circle + ECB/ESCB Sep 22 both say replace with liquidity-based test: min % of reserves maturing/convertible within 1 and 5 working days to meet redemptions — Circle: fixed floor raises credit/counterparty risk, forces dependence on banks*
- *Real example: March 2023 SVB collapse — $3.3B USDC reserves trapped at SVB, USDC depegged to $0.88 — recovered after US protected depositors — argues deposit concentration = stablecoin instability*
- *Also challenges: 35% cap on exposure to single sovereign (hurts dollar stablecoin holding US Treasuries) + 1.5% of bank's total assets cap per bank (forces dozens of banking relationships for large issuers) — wants both scrapped*
- *Your "3 of 25" claim: Actually Circle told Commission only 3 of top 30 stablecoins meet MiCA today: USDC, USDG, EURC — USDC qualifies but model is brittle under current rules*
- *Plus: Preserve multi-issuance (EU authorized entity + foreign affiliate co-issue same token) + equivalence regime — otherwise users go offshore — industry parallel: Hyperliquid Policy Center wants perps under MiFID II not MiCA*
*BREAKING 🚨 Circle hits MiCA reserve rules in Sep 30 review ⚡ Wants to scrap 30%/60% bank deposit floor for flexible 1-day/5-day liquidity metric — aligns with ECB Sep 22 — cites $3.3B SVB trap Mar 2023 depeg — also wants removal of 35% sovereign cap + 1.5% per-bank asset cap that forces dozens of banks — notes only 3/30 top stablecoins meet MiCA (USDC/USDg/EURC) 📢*
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