Circle asks EU to drop MiCA bank-deposit rule for stablecoins - CryptoRank

Circle has reportedly asked European Union policymakers to reconsider a MiCA provision that would require stablecoin issuers to hold a significant share of their reserves as bank deposits. The request, reported by CryptoRank, puts the stablecoin issuer at the center of an ongoing debate over how Europe's Markets in Crypto-Assets regulation treats reserve backing for tokens pegged to traditional currencies.

The rule matters because reserve composition directly affects how stablecoin models work. Bank deposits offer certain safety and liquidity advantages, but they also concentrate exposure in the banking system and can raise costs for issuers. Circle's position reflects a broader industry concern that strict deposit requirements could make euro- and dollar-denominated stablecoins harder to operate within the EU, potentially pushing activity elsewhere.

What to watch: whether EU authorities signal any flexibility during MiCA's implementation, and how other major issuers respond. Any change would shape where stablecoin reserves sit, how much transparency issuers provide, and how competitive the EU remains as a base for regulated stablecoin activity. For now, this is a policy request, not a rule change.