Circle responds to MiCA review: It is recommended to establish an equivalent recognition system for overseas stablecoins and relax reserve restrictions

Wu said he learned that Circle has submitted a response to the MiCA review consultation to the European Commission, suggesting retaining the stablecoin Multi-Issuance (multiple issuance) model so that global stablecoins can be jointly issued by MiCA-authorized EU entities and overseas regulated entities, and establishing an "equivalence and recognition" system for overseas stablecoins in the long term. Circle also recommends reconsidering the requirement that EMT issuers hold at least 30% of their reserves with commercial banks, increasing to 60% for significant EMT, replacing it with a minimum asset liquidity requirement, and removing the 35% cap on a single sovereign asset and the 1.5% limit on a single bank's exposure to that bank's total assets. The above are Circle’s recommendations for the MiCA review and are not new regulations that have been adopted by the EU.