Circle Urges EU to Rework Stablecoin Reserve Rules in MiCA Review

The substance here is regulatory design, not market drama: Circle is pushing to shift MiCA's reserve regime away from rigid bank-deposit minimums toward liquidity-based standards, and to keep cross-border issuance workable. That matters because reserve rules determine how issuers park the assets backing tokens, and a deposit-heavy mandate ties them to banking-system risk and capacity limits. Who feels it: issuers weighing EU access, and the banks that would hold those reserves. The open question is whether the review treats flexibility as a competitiveness fix or as a concession to issuer lobbying.