Circle seeks changes to EU stablecoin rules

Circle has asked European Union policymakers to revise rules governing stablecoin reserves and cross-border issuance as part of the European Commission’s review of the Markets in Crypto-Assets Regulation, or MiCA. Separately, the Hyperliquid Policy Center has urged regulators to classify perpetual futures under the EU’s derivatives framework. The consultation submission deadline was September 30; the Commission has not announced what steps it will take next. MiCA requires stablecoin issuers to hold at least 30% of reserves in commercial bank deposits, with the threshold rising to 60% for issuers designated as significant. Circle’s submission proposes replacing those fixed deposit shares with requirements focused on the liquidity and availability of reserve assets. The company argues that mandatory bank holdings increase exposure to banking-sector credit and counterparty risks. Circle also wants to preserve multiissuance, under which an EU-authorized entity issues a stablecoin alongside an affiliated issuer in another jurisdiction.