Circle has urged the European Commission to replace MiCA’s mandatory bank-deposit minimums for stablecoin reserves with flexible asset-liquidity requirements and to preserve multi-issuance, under which EU-authorized and foreign-regulated entities co-issue a stablecoin. Circle said the current rules create banking-sector credit and counterparty risks, citing the March 2023 episode when USDC temporarily lost its dollar peg after Circle disclosed $3.3 billion in reserves at Silicon Valley Bank; the funds were later made available after U.S. authorities protected depositors. MiCA requires issuers to hold at least 30% of reserves in commercial bank deposits, rising to 60% for significant issuers. Circle also wants the removal of a 35% single-sovereign exposure cap and a limit on deposits with each banking counterparty equal to 1.5% of that bank’s total assets. The proposals formed part of a broader MiCA review, during which Stand With Crypto EU said more than 50,000 Europeans urged permission for regulated stablecoin rewards and a separate petition exceeded 126,600 signatures. European central banks supported reconsidering deposit minimums but advocated retaining and broadening MiCA’s ban on direct and indirect holder payments, while other industry groups proposed changes to perpetual-futures regulation, token classification and payment-services overlap. The consultation closed on September 30, 2026, though the Commission has not said when it will publish findings or propose amendments.