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EU MiCA review: Circle and advocates urge stablecoin rule changes
The European Union is undergoing a critical review of its Markets in Crypto-Assets (MiCA) regulation, revealing a divide between industry advocates, central banks, and financial regulators.
Circle, the issuer of USDC and EURC, has urged policymakers to revise reserve requirements. Circle argues that mandatory commercial bank deposit thresholds increase exposure to banking sector credit risks and suggests replacing them with more flexible asset liquidity standards. Additionally, Circle advocates for a ‘multi-issuance’ model to allow EU-licensed entities to co-issue stablecoins with overseas affiliates, warning that restrictions could drive users toward unregulated offshore services.
Public advocacy groups, led by Stand With Crypto EU, have mobilized significant opposition to current restrictions. Over 50,000 Europeans submitted comments to the European Commission requesting that regulated stablecoins be permitted to offer consumer incentives such as cashback and loyalty rewards. A separate petition has gathered over 126,000 signatures calling for a more permissive approach to maintain European competitiveness against the US and Asia.
In contrast, European central banks are pushing for stricter oversight. They have proposed extending the existing ban on stablecoin interest to include indirect yields from lending, borrowing, and staking arrangements. Meanwhile, the European Securities and Markets Authority (ESMA) has proposed expanding its enforcement powers, including the ability to freeze crypto assets suspected of being linked to criminal activity and the capacity to block fraudulent websites.
Entities
Circle · European Central Bank · European Commission · European Securities and Markets Authority · European System of Central Banks · Markets in Crypto-Assets Regulation · Stand With Crypto EU
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] Circle recommends replacing mandatory commercial bank deposit requirements for reserves with more flexible liquidity requirements. blockchainseoul.kr · www.blockmedia.co.kr · www.cryptobreaking.com · cryptonomist.ch
- [● 7 SOURCES] More than 50,000 Europeans submitted comments to the European Commission urging the relaxation of stablecoin reward restrictions. bitnewsbot.com · www.criptonoticias.com.br · sotutto.it · www.btc-echo.de · cryptobriefing.com
- [● 3 SOURCES] European central banks have proposed extending the ban on stablecoin interest to include lending, borrowing, and staking arrangements. bitnewsbot.com · cryptobriefing.com
- [● 6 SOURCES] A separate petition by Stand With Crypto EU has gathered over 126,000 signatures calling for a more permissive EU stablecoin approach. bitnewsbot.com · www.criptonoticias.com.br · sotutto.it · cryptobriefing.com
- [● 2 SOURCES] Only three of the top 30 global stablecoins, specifically USDC, USDG, and EURC, currently comply with MiCA rules. blockchainseoul.kr · crypto.news
- [● 3 SOURCES] The European Securities and Markets Authority (ESMA) has proposed new powers to freeze crypto assets linked to crime and block fraudulent websites. blockchainreporter.net · www.tekedia.com · kryptouutiset.net
- [● 3 SOURCES] Circle proposes maintaining a ‘multi-issuance’ structure where an EU-licensed entity and an overseas entity co-issue a global stablecoin. blockchainseoul.kr · www.blockmedia.co.kr · crypto.news