Circle Advocates for Changes in EU’s MiCA Regulations
- Circle submitted recommendations to the European Commission, highlighting that current MiCA rules have produced many regulated issuers but captured few major global tokens.
- The company urged the EU to maintain “multi-issuance” to prevent activities from moving offshore and suggested easing reserve requirements, aligning with the ECB against the current bank-deposit mandate.
- Circle argued that MiCA’s requirement for e-money token issuers to hold a significant portion of reserves in commercial bank deposits increases exposure to banking-sector risks.
Circle’s push comes as the EU prepares for a broader overhaul of MiCA by 2027, amid a growing U.S.-EU contest over stablecoin dominance. The firm aims to refine regulations it credits with giving Europe an early lead in digital asset regulation.
By advocating for these changes, Circle seeks to close the gap between regulated issuers and major global tokens under MiCA, ensuring Europe’s competitive edge in crypto markets is maintained. (Source)
