Circle has urged the European Commission to revise reserve rules under MiCA (the EU crypto-market regulation), replacing mandatory bank-deposit minimums for stablecoin issuers with a more flexible minimum asset-liquidity requirement. The USDC and EURC issuer said deposit mandates create banking-sector credit and counterparty risks, which it experienced in March 2023 when USDC temporarily lost its dollar peg after Circle disclosed that $3.3 billion of reserves were held at Silicon Valley Bank. The funds were later made available after US authorities protected the bank’s depositors. Circle also supports removing MiCA’s 35% cap on exposure to a single sovereign and its limit on deposits with each counterparty equal to 1.5% of that bank’s total assets. It called for preserving multi-issuance, allowing an EU-authorized entity and a foreign-regulated counterpart to co-issue a stablecoin, arguing that restrictions could drive users toward offshore providers outside MiCA’s protections. The consultation closed Wednesday, and responses will inform the European Commission’s assessment of MiCA and activities outside its current scope. The European Central Bank supports reconsidering mandatory deposit minimums, while the Hyperliquid Policy Center and Global Blockchain Business Council proposed additional changes to crypto-market and stablecoin rules.