Circle urges EU to ease strict bank reserve rul... - Pluang

Circle has reportedly asked European Union policymakers to reconsider strict bank reserve requirements tied to its euro-denominated stablecoin, EURC. The request centers on rules that require stablecoin issuers to hold a large share of reserves in EU banks, which Circle argues could make operations more costly and less flexible.

The debate matters because stablecoin regulation is still taking shape across major markets. The EU’s crypto framework, MiCA, sets reserve and custody standards aimed at protecting holders, but issuers say overly rigid rules can push activity to other jurisdictions. If Circle’s push leads to adjustments, it could influence how euro stablecoins are structured and where they are issued.

For observers, the key points to watch are whether EU officials signal any openness to revising reserve rules, how competitors respond, and whether the outcome affects the broader availability of euro-backed digital assets. Any change would likely be gradual, given the EU’s emphasis on financial stability and consumer safeguards.