Circle, the USDC issuer, and Tether, the USDT issuer, are joining forces to urge the European Union to amend MiCA rules on stablecoin reserves. According to Circle, only three of the world’s 25 largest stablecoins by market value are currently regulated under MiCA, despite roughly 30 e-money tokens securing authorization. Both companies are challenging the requirement that e-money token issuers keep at least 30% of reserves in commercial-bank deposits, rising to 60% for tokens classified as significant. Tether CEO Paolo Ardoino said the company declined to seek an EU license because of this requirement. The European Banking Authority has, however, recommended strengthening MiCA against risks arising from third-country multi-issuer stablecoin structures.
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