Circle has formally urged the European Union to revise its stablecoin reserve requirements as part of the upcoming review of the Markets in Crypto-Assets regulation (MiCA), according to a report by TradingView.

The company, which issues the USDC and EURC stablecoins, is pressing Brussels to adjust the rules governing how issuers must hold and manage the reserves backing their tokens. The intervention lands as EU institutions prepare the mandated reassessment of the framework that took full effect for stablecoin issuers in mid-2024.

What is Circle asking for?

Circle's submission centers on the reserve provisions in MiCA, the EU's comprehensive crypto-asset rulebook. Under the current regime, so-called e-money tokens must be fully backed by reserves held in low-risk, liquid assets, with issuers required to hold a portion in segregated accounts at credit institutions. The rules also impose redemption obligations designed to guarantee holders can exit at par value.

Circle argues the specifics of those reserve requirements need revision. The company did not detail every element of its position in the initial report, but the lobbying effort reflects a broader industry position that the current reserve composition and custody rules are operationally burdensome for issuers operating across multiple jurisdictions.

Why does the MiCA review matter?

The review gives EU policymakers a formal window to recalibrate the regime after its first years in force. For stablecoin issuers, the stakes are structural: reserve rules determine which banks and qualifying institutions can custody backing assets, what instruments qualify, and how much capital issuers must park in segregated accounts.

For a firm like Circle, the requirements shape its European cost base and its ability to structure reserves efficiently. Tighter constraints on eligible assets and custody providers raise compliance costs and can concentrate counterparty exposure among a limited set of EU credit institutions.

Who is Circle in this fight?

Circle is one of the largest regulated stablecoin issuers globally and among the most active corporate voices in shaping stablecoin legislation. It has engaged with regulators on both sides of the Atlantic and has positioned its EU-compliant tokens, including EURC, as vehicles for operating under MiCA's authorization regime.

Its intervention in the MiCA review puts it in direct dialogue with the European Commission, which must assess whether the regulation's stablecoin provisions have functioned as intended since they became applicable.

What comes next?

The EU's review process will unfold over the coming months, with the Commission expected to weigh industry submissions against investor-protection and financial-stability considerations. Any proposed amendments to MiCA's reserve rules would then move through the standard EU legislative procedure, a timeline that typically runs well beyond a single review cycle.

Circle's proposal now sits before Brussels as part of that docket.