Circle is pressing the European Union to change parts of its crypto rulebook, saying the current stablecoin regime is leaving the world’s largest tokens outside Europe’s regulatory perimeter.
On Thursday, the stablecoin issuer said it had submitted a response to the European Commission’s consultation on the review of the Markets in Crypto-Assets Regulation, or MiCA, the bloc’s broad framework for digital assets.
Circle, which issues the dollar-pegged USDC and euro-pegged EURC, presented its proposals as adjustments to a framework it says gave Europe an early lead.
Circle says MiCA is missing the largest global stablecoins
The company’s central argument is that MiCA has produced a number of regulated issuers, but has not captured the biggest global tokens. Circle said that, among the top 25 stablecoins by market value, only three are regulated under MiCA.
To narrow that gap, Circle urged the Commission to keep “multi-issuance” in place. The structure allows a globally circulating stablecoin to be co-issued by an EU-authorized entity alongside its foreign-regulated counterpart. Circle said restricting that model would push activity offshore instead.
Reserve requirements are at the center of the dispute
Circle’s sharpest requests focus on reserve rules. Under MiCA, e-money token issuers must hold at least 30% of reserves in commercial bank deposits. That rises to 60% for tokens considered “significant.”
Circle argued that the mandate increases exposure to banking-sector credit risk. The company backed the European Central Bank’s position and called for the requirement to be replaced with a more flexible liquidity rule.
It also asked regulators to remove a 35% cap on single-sovereign exposure and a rule that limits how much it can hold at any one bank. Circle said those constraints would force large issuers to spread reserves across dozens of banks.
A broader MiCA revision is already in view
The filing arrives as the EU prepares a wider MiCA overhaul. Brussels is expected to revise the framework in 2027 to better address foreign stablecoin issuers. At the same time, crypto firms in Europe are dealing with pressure from MiCA’s transition period, while regulators are pushing platforms such as Binance on compliance.
The move comes in a wider stablecoin competition
Circle’s push also reflects a broader contest over stablecoin dominance. As U.S. issuers expand overseas, Washington is increasingly framing dollar-pegged tokens as a way to extend the dollar’s global reach.