Circle challenges EU stablecoin rules requiring bank deposits
Circle contests EU stablecoin deposit requirements
Circle, the company behind the USDC stablecoin, is pushing back against a key rule in the EU's Markets in Crypto-Assets (MiCA) regulation. The rule requires stablecoin issuers to hold user funds in traditional bank deposits, and Circle disagrees with how it is structured.
MiCA is the European Union's comprehensive regulatory framework for crypto assets, which took effect earlier this year. It aims to bring oversight and consumer protections to the stablecoin and broader crypto space.
Key points
- Circle is opposing MiCA's mandate that stablecoin issuers keep customer funds in bank deposits.
- Circle issues USDC, one of the largest stablecoins by market value.
- MiCA is the EU's main regulatory law governing crypto assets.
What is still unclear
The source does not provide details on exactly what Circle objects to beyond the bank-deposit mandate, nor does it explain Circle's proposed alternative or how regulators are responding to the pushback.
Why this matters
How stablecoin issuers must hold and protect user funds is one of the most consequential questions in crypto regulation. Rules around bank deposits could affect the cost and structure of stablecoin operations across Europe and influence how these products evolve globally.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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