Circle Advocates for MiCA Revisions to Retain Stablecoin Users
- Circle, issuer of USDC, seeks updates to the Markets in Crypto Assets (MiCA) regulation to prevent users from moving to offshore exchanges.
- The company recommends a recognition regime for foreign stablecoin issuers, allowing them to operate under their national jurisdiction with EU recognition.
- Circle argues against current capital requirements that mandate holding up to 60% of reserve assets in commercial banks, suggesting a less rigid liquidity requirement instead.
- Diplomatic sources indicate the EU is open to revising stablecoin rules following global regulatory changes.
Circle’s proposals aim to align MiCA with international standards and reduce banking sector risk exposure for stablecoin issuers by modifying capital requirements. These changes are intended to keep stablecoin users within regulated markets rather than seeking alternatives offshore.
With over $74 billion in market capitalization, Circle’s USDC is a major player advocating for these regulatory adjustments, emphasizing the need for a flexible framework that accommodates both local and foreign stablecoins effectively. (Source)
