Circle urges EU to revise stablecoin reserve rules in MiCA review - TradingView

Circle, the issuer of the USDC stablecoin, has submitted feedback urging European Union policymakers to revise the reserve requirements for stablecoin issuers under the Markets in Crypto-Assets (MiCA) framework. The request comes as part of the scheduled review of MiCA, the EU's comprehensive crypto regulation that set reserve, custody, and disclosure standards for stablecoin issuers operating in the bloc.

The core issue is how stablecoin reserves must be structured. MiCA imposes strict limits on the composition of reserves backing stablecoins, and Circle's feedback argues these rules may be overly restrictive compared with regimes in other jurisdictions. For markets, the debate matters because reserve rules directly affect how stablecoins operate, how much they can issue, and how easily they can be redeemed — factors that influence liquidity and confidence in dollar- and euro-denominated tokens used for trading and payments.

What to watch: whether EU authorities signal openness to amending reserve provisions during the MiCA review, and how other major issuers respond. Any shift in the rules could reshape where stablecoin activity is based and how European banks and exchanges integrate these tokens.