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

Circle has submitted feedback to European Union authorities as part of the scheduled review of the Markets in Crypto-Assets (MiCA) regulation, calling for changes to the reserve requirements that apply to stablecoin issuers. MiCA, which introduced a unified framework for crypto assets across the EU, imposes rules on how stablecoin reserves must be held and composed. Circle's push reflects an ongoing debate over whether current requirements are workable for issuers operating at scale.

The discussion matters because reserve rules directly shape the economics of issuing stablecoins in Europe. Stricter or inflexible requirements can raise costs, limit the range of eligible reserve assets, or push activity toward other jurisdictions. For market participants, any revision could affect the competitiveness of EU-regulated stablecoins relative to those issued elsewhere, and influence where issuers choose to base operations.

What to watch: the scope of the MiCA review, whether EU lawmakers signal openness to adjusting reserve provisions, and how other major issuers respond. Because MiCA is still being phased in, early feedback from large players like Circle may help set expectations for how the framework evolves — a process worth tracking for anyone exposed to euro- or dollar-denominated stablecoins.