Circle Urges EU to Overhaul MiCA Stablecoin Reserve Rules

Circle submitted a response to the European Commission's MiCA consultation on October 2, 2026, arguing that current stablecoin rules exclude the largest global tokens from the EU regulatory perimeter. Of the top 25 stablecoins by market value, only three are MiCA-regulated, the issuer of USDC and EURC said. Circle urged the Commission to preserve "multi-issuance," the co-issuance structure for globally circulating tokens, warning that restricting it would push activity offshore. It also called for replacing MiCA's requirement that e-money token issuers hold 30% of reserves in commercial bank deposits — rising to 60% for "significant" tokens — with a more flexible liquidity standard, siding with the European Central Bank. Additionally, Circle asked regulators to scrap a 35% cap on single-sovereign exposure and a per-bank holding limit, saying both would force large issuers to spread reserves across dozens of banks. The EU is expected to revise MiCA in 2027 to address foreign stablecoin issuers.