According to Decrypt, Circle, the issuer of the USDC stablecoin, has formally objected to a key provision in the European Union’s MiCA regulation that requires stablecoin issuers operating within Europe’s regulatory perimeter to hold bank deposits as reserves. In a submission to the European Commission, Circle argued that the reserve mandates and concentration caps under MiCA prevent the largest global stablecoins from operating inside Europe’s perimeter, effectively excluding major stablecoin providers from regulated participation. The company aligned its position with that of the European Central Bank, which has advocated for more flexible rule-making in this area.
