Circle Seeks EU Relief from Stablecoin Bank-Deposit Mandates

Circle, the issuer of the USDC stablecoin, has urged the European Union to replace its bank-deposit mandates for stablecoins. The company wants to preserve cross-border co-issuance and create a recognition route for foreign stablecoins, while central banks demand stronger safeguards.

Circle's request comes as the EU continues to debate the regulation of stablecoins. The company is seeking to balance the needs of the stablecoin industry with the demands of central banks, which are calling for stronger safeguards to prevent the use of stablecoins for illicit activities.

The EU's bank-deposit mandates for stablecoins are seen as a key issue for the industry, as they could limit the use of stablecoins for cross-border transactions and create regulatory barriers for issuers.