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Circle Urges EU to Scrap Strict Bank Deposit Rules for Stablecoins
Circle, the issuer of the second-largest stablecoin, proposed a new regime for foreign-regulated stablecoins under MiCA, the EU's crypto rules. It wants international issuers supervised mainly in their home jurisdiction with equivalent EU measures, while locally licensed institutions handle distribution.
Published:
Updated:
What happened
Circle, the issuer of the second-largest stablecoin, proposed a new regime for foreign-regulated stablecoins under MiCA, the EU's crypto rules. It wants international issuers supervised mainly in their home jurisdiction with equivalent EU measures, while locally licensed institutions handle distribution.
Proposed
Global impact / market context
If adopted, foreign stablecoin issuers could avoid strict EU bank deposit rules, which are safekeeping requirements. This lowers compliance costs and could expand stablecoin availability for EU investors, but it may reduce protections for holders if home rules are weaker.
Analyst inference
EU stablecoin rules are still being shaped, so this proposal is not final. Circle's push reflects competition among issuers for market access and could influence how EU regulators balance innovation, investor protection, and financial stability.
Analyst inference
What to watch
- EU authorities will decide whether to accept Circle's proposed regime for foreign stablecoins, which would let home supervisors take the lead with equivalent EU measures. Confirmed
- Circle proposes that locally licensed institutions handle distribution of foreign stablecoins, a change that could shift how EU buyers access these tokens if approved. Proposed
- Watch whether EU regulators accept equivalent home supervision or insist on strict bank deposit rules, which would raise costs for foreign issuers and affect stablecoin supply. Analyst inference