Circle urges EU to revise stablecoin reserve rules in MiCA review - TradingView

Circle, the issuer of the USDC stablecoin, has asked European Union authorities to revise the reserve requirements for stablecoin issuers as part of the ongoing review of the Markets in Crypto-Assets (MiCA) regulation, according to TradingView. The request centers on how MiCA treats the reserves backing stablecoins — the assets issuers must hold to match the value of tokens in circulation.

The topic matters because reserve rules shape how stablecoin issuers operate in the EU. Strict limits on eligible reserve assets can affect the mix of cash, bank deposits, and short-term government debt that backs a token, which in turn influences issuer costs, liquidity, and the attractiveness of the euro-denominated stablecoin market. MiCA was designed to create a unified framework across member states, so any adjustment could ripple across the sector.

What to watch: the outcome of the MiCA review process, how EU regulators respond to industry feedback, and whether other major issuers align with Circle's position. Any change to reserve standards could influence where stablecoin firms choose to base operations and how they structure products for European users.