Circle Responds to MiCA Review: Suggests Retaining Stablecoin Multi-Issuance Mechanism and Adjusting Reserve Asset Requirements

Circle has submitted a formal response to the European Commission’s consultation on the review of the Markets in Crypto-Assets Regulation (MiCA). Circle stated that currently only three of the top 25 global stablecoins by market capitalization—USDC, USDG, and EURC—are regulated under MiCA. Therefore, it recommends retaining the "Multi-Issuance" mechanism, allowing globally circulating stablecoins to be jointly issued by EU entities authorized under MiCA and overseas regulated entities, to prevent related demand from shifting outside the EU's regulatory scope. Circle also recommended establishing a long-term "equivalence and recognition" regime for overseas-regulated stablecoins, and revisiting MiCA's requirement that e-money token issuers deposit at least 30% of reserve assets in commercial banks, proposing instead more flexible minimum asset liquidity requirements. Furthermore, Circle recommended removing the 35% position limit on single sovereign assets and the restriction limiting single banking exposure to no more than 1.5% of the bank's total assets.