Circle asks EU to drop MiCA bank-deposit rule for stablecoins - CryptoRank

Circle has reportedly asked European Union authorities to remove a requirement under the Markets in Crypto-Assets (MiCA) framework that would treat stablecoin reserves held at banks in a way the company considers unsuitable for its business model. The request centres on how MiCA classifies bank deposits backing stablecoins, a rule that affects where issuers can safely hold reserve assets.

The outcome matters because MiCA is among the first comprehensive crypto rulebooks in a major jurisdiction, and its treatment of reserves shapes the cost and practicality of issuing euro- or dollar-pegged tokens in the bloc. If the bank-deposit provision stands, issuers may need to restructure reserves or limit EU activity; if it is relaxed, more stablecoin supply could remain within the regulated perimeter.

For markets, the key signal is regulatory direction rather than any immediate price effect. Watch for formal responses from EU bodies and any amended technical standards, since these will indicate how much flexibility stablecoin issuers can expect under MiCA.