Circle Pushes Back on MiCA's Bank-Deposit Mandate for Stablecoins
60-second summary
Circle tells the European Commission that MiCA’s reserve‑requirement and concentration caps prevent major stablecoins like USDC from operating in Europe, so it backs the ECB’s call for more flexible rules; the issuer argues the mandates hinder liquidity and competitiveness, and warns that strict bank‑deposit mandates could push stablecoin activity to jurisdictions with looser regulations, impacting European market adoption.
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.