Circle Urges EU to Ease Stablecoin Bank-Deposit Rules - Yahoo Finance

Circle, the issuer of the USDC stablecoin, is reportedly urging European Union policymakers to ease rules governing how stablecoin reserves are held at banks, according to Yahoo Finance. The request centers on the EU's stablecoin framework, which sets conditions for how issuers custody the assets backing their tokens—including limits and safeguards around bank deposits.

The regulatory treatment of reserves matters because it directly shapes the cost and flexibility of issuing a stablecoin in Europe. Stricter deposit rules can push issuers toward alternatives such as short-term government debt, or make EU operations less attractive relative to other jurisdictions. For markets, this is a signal that the post-MiCA rulemaking phase is still being contested, and that compliance design—not just token features—can influence where stablecoin liquidity concentrates.

What to watch: whether EU authorities signal any openness to revisions, and how other major issuers respond. Any adjustment could affect reserve composition, transparency disclosures, and the competitive balance between dollar- and euro-denominated stablecoins in European markets.