Circle Seeks EU Stablecoin Regulation Overhaul
Circle, the parent company of USDC stablecoin, has urged the European Union to reconsider its bank-deposit mandates for stablecoins. According to Circle, these mandates will hinder innovation in the stablecoin space and create regulatory uncertainty.
The EU's current rules require that stablecoins be backed by deposits at a bank or other financial institution. Circle argues that this approach is overly restrictive and may not be necessary given the low risk of stablecoin failures.
Circle has been pushing for more flexible regulations in the EU, which it believes will help to promote innovation and growth in the stablecoin market. The company's efforts are part of a broader push by the crypto industry to achieve greater regulatory clarity and cooperation across Europe.