Circle pushes to replace MiCA's bank deposit floor @circle has submitted its formal response to the European Commission's targeted review of MiCA, the EU's crypto rulebook, calling for signif
@circle has submitted its formal response to the European Commission's targeted review of MiCA, the EU's crypto rulebook, calling for significant changes to how stablecoin issuers are required to hold their reserves.
The $USDC issuer's central ask is the removal of MiCA's mandatory bank deposit floor. Circle's main target is MiCA's bank deposit floor. Right now, e-money token issuers must keep at least 30% of their reserves in commercial bank deposits, and 60% if the European Banking Authority deems the token "significant," a label reserved for the largest coins. Circle wants that fixed threshold replaced with a looser liquidity-based test, a position that aligns it with the ECB.
The European Central Bank and the European System of Central Banks formally asked the European Commission on 22 September 2026 to delete MiCA's rule forcing stablecoin issuers to hold up to 60% of reserves as bank deposits.The central banks say issuers should not be forced to keep a set share of reserves as deposits at credit institutions, arguing those deposits can leave banks exposed to swings in stablecoin demand. They want the law changed so that a minimum percentage of token reserves must be held in assets that mature within one and five working days.
The ECB's concern is one of systemic risk, not deregulation. The ESCB argues this model creates a direct link between stablecoin issuers and banks. That linkage matters because if holders redeem at pace, issuers may need to withdraw deposited funds quickly, behavior that can strain bank liquidity at exactly the moment it is most needed.
Circle also recommended preserving multi-issuance, which allows globally circulating stablecoins to be issued through both EU-authorized and foreign-regulated entities. The arrangement is important for the practical operation of a coin like $USDC, which circulates across multiple jurisdictions under different regulatory frameworks.
Circle also highlighted how few major stablecoins currently fall within MiCA's perimeter. Only three of the top 25 stablecoins are MiCA-compliant today, according to Circle's submission, pointing to a significant coverage gap the review could address.
The Commission's MiCA review consultation closed on September 30.Circle's submission draws on the company's experience operating as a MiCA-authorized e-money token issuer, having issued the dollar-denominated USDC and the euro-denominated EURC under the framework for two years. The Commission will now weigh responses from industry participants, central banks, and other regulators before deciding whether to propose amendments to the regulation.
Sources:The Crypto Times: Circle Urges EU to Rework MiCA Stablecoin Reserve RequirementsThe Block: Hyperliquid Policy Center, Circle press EU on perps and stablecoin reserves in MiCA reviewGenfinity: ECB and EU Central Banks Push to Scrap MiCA's 60% Stablecoin Deposit Rule
