Circle urges EU to revise stablecoin reserve rules in MiCA review

Circle has asked the European Commission to change reserve rules under the EU’s Markets in CryptoAssets framework as part of a review of the regulation. The company says current requirements that force stablecoin issuers to keep minimum deposits in commercial banks can increase credit and counterparty risk. In its response, Circle argued that the rules should rely on more flexible liquidity standards instead of fixed bankdeposit minimums. The company also supported removing certain concentration limits and keeping a crossborder coissuance model known as multiissuance, saying it helps preserve access to MiCA protections. The consultation closed on Wednesday and is part of the Commission’s broader assessment of how MiCA is working as crypto markets evolve. Other industry groups also submitted proposals on stablecoin safeguards, token classification, and rules for onchain market activity.