Circle is asking the European Union to adjust its crypto regulations, arguing that the bloc’s Markets in Crypto-Assets framework has created a system with many compliant issuers but has not brought most of the largest stablecoins within Europe’s regulatory perimeter.
The stablecoin company submitted recommendations to the European Commission’s consultation on a review of MiCA, according to Decrypt. Circle issues USDC, a token pegged to the U.S. dollar, and EURC, which is pegged to the euro. It described its proposals as changes intended to improve a framework that gave Europe an early lead in regulating digital assets.
Circle’s case for multi-issuance
Circle said only three of the 25 largest stablecoins by market value are regulated under MiCA. Its central concern is that the rules have not attracted the biggest globally used tokens, leaving a gap between the framework’s formal reach and the market’s most important assets.
The company urged EU policymakers to retain “multi-issuance.” Under that structure, a stablecoin with global circulation can be issued jointly by an entity authorized in the EU and a foreign-regulated counterpart. Circle warned that limiting this arrangement could drive stablecoin activity outside the bloc rather than bring more issuers under European supervision.
A stablecoin is a cryptoasset designed to maintain a stable value against an underlying asset such as a currency. Dollar- and euro-pegged tokens are commonly used in digital-asset trading and payments, making the rules governing their reserves and issuance especially significant for regulators.
Dispute over reserve requirements
Circle’s strongest objections concern how MiCA requires e-money token issuers to hold their reserves. At least 30% must currently be kept in commercial bank deposits, with the requirement rising to 60% for tokens classified as significant.
Circle argued that this approach can increase exposure to credit risk in the banking sector. It backed the European Central Bank’s position that the deposit mandate should instead be replaced with a more flexible liquidity requirement.
The company also called for the removal of a 35% limit on exposure to any single sovereign and a separate restriction on how much reserve capital can be held at one bank. Circle said those provisions could force large issuers to distribute reserves among dozens of banks.
MiCA review approaches
The recommendations arrive before a broader MiCA overhaul expected in 2027. The EU is preparing to revisit how the framework handles stablecoin issuers based outside the bloc, while European crypto businesses continue to operate through MiCA’s transition period and regulators maintain pressure on platforms such as Binance over compliance.
The debate also has an international dimension. U.S. stablecoin issuers are expanding abroad, while Washington is increasingly presenting dollar-linked tokens as a way to extend the global role of the U.S. currency. Changes to Europe’s rules could therefore affect not only local compliance but also the competitive balance between U.S. and European digital-asset markets.
Market picture
Moneyiar market data at 09:23-09:24 on October 3, 2026, showed USDC at $0.9999868313, up 0.02% over 24 hours and 0.01% over seven days. STABLE was at $0.0266087834, down 6.03% in 24 hours but up 1.57% over seven days. CAP stood at $0.0718416749, rising 7.82% in 24 hours and 39.73% over seven days, while MET was $0.2885275731, down 9.60% daily and 17.48% weekly.
