Circle Seeks MiCA Changes as cirBTC Launches on Ethereum and Arc

Circle seeks broader global stablecoin access under MiCA

Circle submitted its response to the European Commission’s MiCA Review Consultation on October 1, 2026. The company issues USDC and EURC under MiCA and said its operating experience gives it direct knowledge of how the framework works.

“Circle has submitted its response to the European Commission’s MiCA Review Consultation. Our feedback draws on two years of experience operating USDC and EURC under MiCA, with a focus on strengthening Europe’s role as a dynamic, liquid stablecoin market. In the response, we…” Circle said.

Circle said MiCA has established a solid regulatory framework, with about 30 e-money tokens currently authorized. However, it argued that access to major global stablecoins remains limited. Among the top 25 stablecoins by market capitalization, only 3 — USDC, USDG and EURC — are regulated under MiCA.

The company said the central issue is access to global liquidity rather than a lack of regulated European issuers. Circle proposed retaining multi-issuance, a model under which the same stablecoin can be issued by regulated entities in different jurisdictions. It said restrictions on that model could push European customers toward offshore platforms, moving transactions outside MiCA protections. Circle proposed additional safeguards, including mechanisms for moving assets between global reserves and reserves supporting European operations.

Circle also proposed a broader equivalence system for non-EU stablecoins. Under the suggested 2-stage process, the European Commission would first determine whether another jurisdiction provides an equivalent level of regulatory protection. The European Banking Authority would then identify qualifying issuers under that framework, with European distribution handled through a locally licensed institution.

The company said foreign issuers could remain primarily supervised by regulators in their home jurisdictions while meeting conditions recognized as equivalent to European requirements. Circle also proposed reciprocal recognition that could give EU-issued stablecoins similar access to overseas markets.

Reserve rules were another focus. Circle argued that mandatory bank deposits can expose stablecoin issuers to risks within the banking system. It pointed to March 2023, when USDC temporarily lost its dollar peg after Circle disclosed that $3.3 billion of its reserves were held at Silicon Valley Bank. U.S. authorities later protected depositors and made the funds available, after which USDC recovered its dollar value.

The European Commission will consider submissions from market participants as part of its MiCA review before assessing potential changes and making regulatory decisions.