Circle submitted recommendations to the European Commission as part of the MiCA review, arguing that the regulation has produced many regulated issuers but captured few of the largest global stablecoins. Of the top 25 stablecoins by market value, only three are MiCA-regulated. The company opposes the mandate requiring 30% to 60% of reserves to be held as commercial bank deposits, arguing it increases exposure to banking-sector credit risk, siding with the European Central Bank for a more flexible liquidity requirement. Circle also warns that any restriction on the multi-issuance structure could simply push activity offshore. This push comes as the EU prepares a broader MiCA overhaul expected in 2027, amid a wider U.S.-EU contest over stablecoin dominance.
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