Circle Urges EU to Change MiCA Rules, Says Only 3 of Top 30 Stablecoins Comply

Circle has called on EU policymakers to adjust certain provisions in MiCA, noting that the majority of the largest global stablecoins are not included. According to Patrick Hansen, EU strategy and policy director at Circle, only three of the world’s top 30 stablecoins are MiCA-compliant.

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Circle Pushes for Wider Stablecoin Recognition

According to Circle, MiCA has already established a significant regulated stablecoin ecosystem, featuring approximately 30 e-money tokens approved in Europe. However, the company believes the framework still captures only a small share of the largest global stablecoins.

Hansen said “only 3 of the top 30 are MiCA-compliant today,” referring to USDC, USDG, and EURC. Circle’s accompanying policy post used a top-25 comparison, but it identified the same three regulated stablecoins.

Circle has thus requested the EU to maintain multi-issuance, which would enable a MiCA-licensed entity to issue a token alongside an affiliate in a different jurisdiction. The company stated that limiting that model could shift the European stablecoin market to the offshore market.

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Circle Calls for Changes to MiCA Reserve Rules

Circle also sought regulators to review MiCA requirements for e-money token issuers regarding reserves. The rules require at least 30% of reserves in commercial bank deposits, rising to 60% for significant issuers.

The company has agreed with the European Central Bank that those thresholds are too strict and may lead to higher risk of banking counterparty exposure. Circle, on the other hand, suggested a liquidity-based rule that takes into account the quality and availability of reserve assets.

This comes on the heels of Circle’s euro-backed stablecoin, which is expanding under MiCA. As we reported, use of EURC grew in payments and settlement, and supply has more than doubled year over year to approximately €400 million. Recently, Revolut has also introduced EURR as a further euro stablecoin in Europe’s regulated market.

Hyperliquid Also Seeks Changes During MiCA Review

Circle’s submission coincided with other cryptocurrency firms reacting to the European Commission’s MiCA consultation. The Hyperliquid Policy Committee concentrated its submission on the treatment of perpetual futures.

The committee recommended that perpetual futures continue to be subject to MiFID II as they are derivatives regardless of how trades are recorded. It also opposed applying bilateral CFD restrictions to transparent central limit order books.

Hyperliquid also urged regulators to acknowledge public blockchain data on its reporting obligations when data is already accessible on the chain. Circle, on the other hand, suggested an alternative approach that would extend over a longer period of time and empower recognized foreign stablecoin issuers to function through locally licensed European institutions.