Circle is pushing back hard on MiCA's reserve rules.
They want:
• Multi-issuance preserved (let $USDC flow globally under one ticker, not force regional splits)
• Kill the mandatory 30-60% bank deposit requirement—replace with flexible liquidity rules
• Remove the 35% sovereign cap (kills holding US Treasuries)
• Scrap the 1.5% per-bank limit (forces splitting reserves across dozens of banks)
Their argument: Current rules create MORE counterparty risk, not less. And blocking multi-issuance just pushes EU users to offshore stables outside MiCA protections.
Only 3 of the top 25 stablecoins operate under MiCA right now—$USDC, $USDG, $EURC. Circle wants EU to adopt an equivalence regime (like TradFi) so foreign issuers can enter without full re-licensing.
EBA is skeptical, worried about risk leakage from global issuance into EU.
EC's MiCA review is open. This could reshape how stablecoins flow into Europe—or cement the status quo where most volume stays offshore.
They want:
• Multi-issuance preserved (let $USDC flow globally under one ticker, not force regional splits)
• Kill the mandatory 30-60% bank deposit requirement—replace with flexible liquidity rules
• Remove the 35% sovereign cap (kills holding US Treasuries)
• Scrap the 1.5% per-bank limit (forces splitting reserves across dozens of banks)
Their argument: Current rules create MORE counterparty risk, not less. And blocking multi-issuance just pushes EU users to offshore stables outside MiCA protections.
Only 3 of the top 25 stablecoins operate under MiCA right now—$USDC, $USDG, $EURC. Circle wants EU to adopt an equivalence regime (like TradFi) so foreign issuers can enter without full re-licensing.
EBA is skeptical, worried about risk leakage from global issuance into EU.
EC's MiCA review is open. This could reshape how stablecoins flow into Europe—or cement the status quo where most volume stays offshore.