Circle Seeks MiCA Overhaul to Boost Stablecoin Market Access

Circle has called for changes to the MiCA stablecoin regulations in Europe. The company believes that revisions are necessary to improve liquidity, expand market access, and strengthen reserve management across Europe.

MiCA is a regulatory framework established by the European Commission to govern digital currencies, including stablecoins. Circle, which issues USDC and EURC under MiCA, has submitted its response to the Commission's review consultation. The company's experience with the framework provides valuable insights into areas for improvement.

Circle pointed out that while MiCA has made significant progress in establishing a solid regulatory environment, it lacks mechanisms to link European markets with global stablecoin activity. To address this issue, the company proposes multi-issuance, which would allow a single stablecoin to be issued by different regulated issuers in various jurisdictions.

The firm also suggested expanding recognition systems for non-EU stablecoins. This would involve establishing equivalence regimes similar to those currently used for financial markets. Circle proposed a two-stage process: the European Commission would first assess if foreign regulatory regimes meet EU standards, and then the European Banking Authority would identify individual issuers within approved frameworks.