Circle Urges EU to Loosen MiCA Rules for Global Stablecoins

Circle's intervention is notable less for its timing than for its alignment with the ECB, which suggests a shared concern that MiCA's reserve and concentration rules may achieve the opposite of their intent: pushing the largest stablecoins into regulatory gaps rather than under supervision. The practical consequence falls on EU banks and payment firms that would otherwise prefer regulated, euro-area rails over offshore alternatives. Whether the Commission treats this as a technical fix or a broader concession to dollar-denominated issuers is the open question.