Circle Urges EU to Drop Stablecoin Bank-Deposit Mandates

The fault line here is structural, not cosmetic: where stablecoin reserves sit determines who bears the credit and liquidity risk, and whether issuance can scale across borders. Circle's push puts it directly against central banks that want bank-like safeguards, so the outcome will shape how much of the EU market is served by EU-domiciled issuers versus recognised foreign ones. The recognition route for foreign stablecoins is the piece with the widest reach. Whether supervisors accept reserve flexibility in exchange for stricter oversight is the open question.