Circle Seeks Changes to EU Stablecoin Regulations Amid Global Liquidity Concerns
Circle, the issuer of the USDC stablecoin, has submitted its response to the European Commission's targeted consultation on the review of the Markets in Crypto-Assets Regulation (MiCA). The company has been operating under the framework for two years and has issued both dollar-denominated USDC and euro-denominated EURC as e-money tokens.
Circle recommends preserving multi-issuance, which allows globally circulating stablecoins to be issued through both EU-authorized and foreign-regulated entities. This structure is currently enabling global liquidity to operate within MiCA's regulatory perimeter.
The company also calls for changes to reserve requirements, proposing a less rigid minimum asset liquidity requirement instead of the current 30% mandatory deposit requirement. Additionally, Circle recommends removal of two concentration rules introduced through the European Banking Authority's Level 2 technical standards.