Circle suggests EU revise MiCA rules for foreign stablecoins, remove bank deposit reserve requirement

Odaily News: USDC issuer Circle has submitted recommendations to the European Commission, advocating for revisions to the rules for foreign stablecoins under the Markets in Crypto-Assets Regulation (MiCA) and the establishment of a recognition mechanism for foreign issuers.

Circle suggests that foreign stablecoin issuers should be primarily regulated by the authorities in their place of registration, and after obtaining equivalence recognition from relevant parties and the European Banking Authority (EBA), EU-licensed local entities would be responsible for distribution. This mechanism would also allow euro stablecoins to circulate in foreign jurisdictions.

Circle also requested the removal of the requirement for e-money token issuers to hold 30% of reserve assets in commercial banks; for "significant" e-money tokens, the ratio is 60%. The company argues that this requirement increases exposure to banking credit risk and counterparty risk. (Bitcoin.com News)