Circle urges the EU to revise MiCA stablecoin rules, improve liquidity, expand market access, and strengthen reserve management across Europe.
Circle has urged the European Commission to revise parts of its MiCA stablecoin framework. The company made recommendations in the course of the Commission’s consultation on the review of MiCA. The company noted that such changes may enhance the liquidity, access to the market, and reserve management of the stablecoin ecosystem in Europe.
Circle Calls for Changes to MiCA Stablecoin Rules
Circle issues USDC and EURC, which are regulated under MiCA. The company said its experience offers hands-on knowledge of how the framework functions. However, Circle believes several targeted changes could improve Europe’s position in the global stablecoin market.
Circle has submitted its response to the European Commission’s MiCA Review Consultation.
Our feedback draws on two years of experience operating USDC and EURC under MiCA, with a focus on strengthening Europe’s role as a dynamic, liquid stablecoin market.
In the response, we…
— Circle (@circle) October 1, 2026
Circle claims that MiCA has established a solid regulatory framework for digital currencies. There are currently about 30 e-money tokens authorised under the framework. Circle said this is a major step forward from other regulatory systems.
But Circle pointed to a missing piece with respect to large global stablecoins. In the top 25 list of stablecoins by market capitalization, only 3 are regulated under MiCA. These include USDC, USDG, and EURC.
The problem is not the absence of regulated European issuers, but access to global liquidity, Circle said. Thus, the company wishes to see MiCA enable mechanisms that link European markets with the activity of stablecoins in the rest of the world.
One idea is multi-issuance, which would allow for a single stablecoin to be issued by different regulated issuers in different jurisdictions. Circle stated this model would enable global stablecoins to be used in Europe’s regulatory environment.
The firm also said it feared limiting multi-issuance would drive European customers to offshore platforms. As a result, such transactions might take place outside of MiCA’s scope of protection.
Circle advised maintaining multi-issuance and enhancing safeguards. Such protections might include moving between global reserves and reserves for European operations.
Circle Proposes Equivalence for Foreign Stablecoins
Circle also suggested a more comprehensive recognition system for non-EU stablecoins. The method would be similar to the current EU equivalence regimes for financial markets, the company said.
The proposal would leave foreign stablecoin issuers under the primary jurisdiction of regulators in their jurisdictions. They would have to satisfy conditions that would be deemed to meet European requirements.
The proposed system would consist of 2 stages. The European Commission would first decide if a foreign regulatory regime offers the same level of protection.
Then, the European Banking Authority would identify individual issuers within the approved framework. Distribution within Europe would then occur through a locally licensed institution.
Circle stated this building might lead to better access for foreign-controlled stablecoins. It could also keep the regulatory control without forcing all the issuers to create the same structure within Europe.
The company also proposed reciprocal recognition of stablecoins from Europe. This could facilitate EU-issued stablecoins to enter international markets under similar conditions.
Circle also discussed the reserve requirements in MiCA. The company said mandatory bank deposits can expose stablecoin issuers to banking-sector risks.
The company pointed to its experience in March 2023, when USDC temporarily lost its dollar peg. Circle had revealed that it had $3.3 billion of USDC reserves in Silicon Valley Bank.
Later, U.S. authorities safeguarded the bank’s depositors and made the money available. The dollar value of USDC was then recovered.
The European Commission will consider input from market participants in its MiCA review. The Commission will assess any changes and make regulatory decisions.
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