Circle Pushes Back on MiCA's Bank-Deposit Mandate for Stablecoins

What happened

In brief Circle submitted recommendations to the European Commission's MiCA (the EU’s regulation for crypto markets) review, arguing the framework has produced many regulated issuers but captured few of the biggest global tokens. The USDC issuer told the European Commission that MiCA's reserve mandates and concentration caps keep the largest global stablecoins outside Europe's perimeter—siding with the ECB in calling for more flexible rules.

Decrypt News Business Circle Pushes Back on MiCA's Bank-Deposit Mandate for Stablecoins The USDC issuer told the European Commission that MiCA's reserve mandates and concentration caps keep the largest global stablecoins outside Europe's perimeter—siding with the ECB in calling for more flexible rules. It urged the EU to preserve "multi-issuance" (warning restrictions would push activity offshore) and to loosen reserve rules, siding with the ECB against the 30%-to-60% bank-deposit mandate.

The push lands ahead of a broader 2027 MiCA overhaul and amid a wider U.S.-EU contest over stablecoin dominance. Circle is pushing the European Union to rework parts of its crypto rulebook, arguing that the current rules governing stablecoins are keeping the world's biggest tokens outside Europe's regulatory perimeter.