Circle Seeks EU Stablecoin Rule Overhaul Amid MiCA Compliance Issues

Circle, a leading stablecoin issuer, has urged European Union (EU) policymakers to revise the Markets in Crypto-Assets (MiCA) framework, citing that only three of the top 30 stablecoins comply with its current rules. According to Circle's EU policy director, Patrick Hansen, only USDC, USDG, and EURC meet the MiCA framework's requirements.

Circle wants EU regulators to preserve issuance arrangements involving European and overseas affiliates, allowing licensed European entities to issue stablecoins alongside affiliated issuers operating in other jurisdictions. This, they argue, would prevent European users from being driven towards offshore providers.

Circle also proposed replacing mandatory bank deposit thresholds with rules based on reserve liquidity, which would reduce exposure to banks' credit and counterparty risks. The company drew on the U.S. GENIUS Act's framework for recognizing foreign stablecoin issuers as a model for European recognition.