Circle Urges EU to Revise MiCA as Only 3 of Top 30 Stablecoins Comply

Circle is calling on European Union policymakers to revise several provisions of the Markets in Crypto-Assets Regulation (MiCA), arguing that the current framework covers only a limited portion of the world’s largest stablecoins.

Patrick Hansen, Circle’s EU strategy and policy director, said that just three of the 30 largest stablecoins globally currently meet MiCA requirements: USDC, USDG, and EURC.

MiCA Builds Regulated Stablecoin Market but Coverage Remains Limited

Circle acknowledged that MiCA has helped establish a regulated stablecoin market in Europe, with around 30 e-money tokens approved under the framework.

However, the company said these approvals represent only a small fraction of the largest stablecoins operating globally, highlighting a gap between Europe’s regulatory framework and the broader international market.

Hansen said in a post on X that only three of the top 30 stablecoins are currently MiCA-compliant. Circle’s policy submission used a comparison of the top 25 stablecoins but reached the same conclusion, identifying USDC, USDG, and EURC as the three compliant assets.

Circle Defends Multi-Issuance for Stablecoin Firms

One of Circle’s main requests is for the EU to preserve the multi-issuance model, which allows a MiCA-authorized entity to issue a stablecoin alongside an affiliated entity operating in another jurisdiction.

Circle warned that restricting this structure could push part of Europe’s stablecoin activity toward offshore markets rather than keeping it within the EU’s regulated financial system.

Circle Challenges MiCA Reserve Requirements

The company also called for a review of MiCA’s reserve requirements for e-money token issuers.

Under the current rules, issuers must hold at least 30% of reserves in commercial bank deposits, with the requirement increasing to 60% for significant issuers.

Circle has aligned with concerns raised by the European Central Bank that these thresholds could be overly restrictive and potentially increase issuers’ exposure to banking counterparties.

Instead, Circle proposed a liquidity-focused framework that would assess reserves based on factors such as asset quality and the issuer’s ability to access those assets when needed.

EURC Expands Across Europe Under MiCA

Circle’s recommendations come as its euro-backed stablecoin, EURC, continues to expand within Europe’s MiCA-regulated market.

EURC has seen increased use for payments and settlement, while its supply has more than doubled year over year to roughly €400 million.

Meanwhile, Revolut has introduced EURR, adding another euro-backed stablecoin to Europe’s growing regulated market.

Crypto Industry Responds to MiCA Review

Circle’s submission is part of a broader industry response to the European Commission’s consultation on potential changes to MiCA.

The Hyperliquid Policy Committee, for example, focused its recommendations on the regulatory treatment of perpetual futures. It argued that perpetual futures should remain subject to MiFID II because they are derivatives, regardless of how their transactions are recorded.

The committee also opposed extending bilateral CFD restrictions to transparent central limit order books.

In addition, Hyperliquid called on European regulators to recognize data published on public blockchains when that information is already accessible on-chain and can satisfy reporting requirements.

MiCA Faces Pressure to Balance Regulation and Market Access

Circle’s proposals highlight the challenge facing European policymakers as they seek to maintain strong oversight without making the EU market less attractive to global stablecoin issuers. Stricter requirements could encourage some activity to move offshore, while greater flexibility around multi-issuance and reserve management could help Europe attract more international issuers. The outcome of the MiCA review could therefore shape not only compliance standards, but also the extent to which Europe remains integrated with the broader global stablecoin market.