Circle has asked the European Commission to revise MiCA reserve requirements, arguing that mandatory commercial bank deposits expose stablecoin issuers to bank credit and counterparty risk. Under current rules, electronic money token issuers must hold at least 30% of reserves in bank deposits, rising to 60% for significant tokens. Circle wants liquidity-based standards and has also backed continued multi-issuance and a recognition framework for regulated foreign issuers. The company points to USDC’s temporary depeg in 2023 after Silicon Valley Bank failed, when $3.3 billion of its reserves were held at the lender. The request, reported by CoinMarketCap on October 3, 2026, opens a policy debate but does not change MiCA. It comes as the European Commission reviews the framework ahead of a broader overhaul expected in 2027, while European supervisors have advocated stronger oversight. Circle said only three of the top 25 stablecoins by market value, USDC, EURC and USDG, are MiCA-regulated.