Circle asks European Commission to rethink MiCA stablecoin bank-deposit minimums
AI Market Summary
Circle is lobbying the European Commission to revise MiCA stablecoin reserve rules, arguing mandatory bank-deposit minimums heighten counterparty risk, citing USDC's 2023 SVB-linked depeg. Proposed changes include replacing fixed deposit quotas with liquidity-based requirements and removing concentration caps, while preserving co-issuance structures to avoid driving users offshore. The outcome could reshape EU stablecoin compliance costs, risk profiles, and market access for regulated issuers.
Impact level
● Medium
Affected assets
NCSKCRCL2USD/USDT+0.77%
AI Insight · NCSKCRCL2USD/USDTAI Insight
● Neutral
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Circle is lobbying the European Union to relax reserve rules under the Markets in Crypto-Assets Regulation (MiCA) that require stablecoin issuers to keep a minimum share of reserves as bank deposits. MiCA currently sets that floor at 30% for e-money token issuers and 60% for issuers the EU deems significant. Circle cites USDC’s brief de-pegging during the 2023 Silicon Valley Bank episode as evidence that high concentration in bank deposits can threaten stability, and it also proposes removing a 35% cap on exposure to any single sovereign and a 1.5% limit tied to any one bank’s total assets. Circle shares, CRCL, are currently trading at $87.80.
