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Circle urges the EU to loosen MiCA reserve rules for foreign stablecoins
Circle says only three major stablecoins are currently regulated under MiCA, despite about 30 e-money tokens receiving authorization since the rules took effect.
Circle is urging the European Union to amend its Markets in Crypto-Assets Regulation framework to allow foreign-regulated stablecoins to operate in Europe with fewer restrictions on reserve requirements, according to CryptoSlate.
The USDC issuer proposed that the European Commission first assess whether a stablecoin issuer’s home jurisdiction is equivalent to EU standards, then have the European Banking Authority recognize specific issuers.
Circle said recognized issuers would remain primarily supervised in their home countries, while distributing tokens through locally licensed institutions, creating an alternative pathway to the current MiCA rules.
CryptoSlate reports Circle noted that only USDC, USDG and EURC are currently regulated under MiCA among the world’s 25 largest stablecoins by market value, even though roughly 30 e-money tokens have secured authorization since the framework began.