Circle urges EU to drop fixed bank deposit rules for stablecoin reserves in MiCA review - Pluang

Circle has asked European Union policymakers to reconsider parts of the Markets in Crypto-Assets (MiCA) framework as the regulation undergoes review. Specifically, the stablecoin issuer is urging the EU to drop fixed rules governing how much of a stablecoin's reserves must be held as bank deposits. The company argues that rigid thresholds could reduce flexibility in managing reserves.

The proposal matters because MiCA is among the first comprehensive regulatory regimes for crypto assets, and its reserve requirements influence how stablecoin issuers structure their balance sheets. If the EU eases fixed deposit rules, issuers may gain more latitude in choosing reserve assets, which could affect yield, liquidity, and risk profiles. Conversely, retaining strict limits may keep reserves concentrated in bank deposits, tying stablecoin stability more closely to the banking system.

For markets, the key question is whether the review leads to more adaptable reserve standards or reaffirms the existing approach. Watch how EU authorities respond, how other stablecoin issuers position themselves, and whether any changes influence similar rulemaking in other jurisdictions.