Circle is urging the European Union to open its Markets in Crypto-Assets Regulation (MiCA) to foreign-regulated stablecoins and loosen reserve rules that constrain global issuers. The USDC issuer proposed a recognition regime that could let qualifying overseas stablecoin companies distribute tokens in Europe without becoming fully authorized EU issuers. Circle is also challenging MiCA's requirement that e-money token issuers keep at least 30% of reserves in commercial-bank deposits (rising to 60% for significant tokens), arguing it increases bank credit and counterparty risk. This echoes concerns previously raised by Tether CEO Paolo Ardoino, who stated Tether declined an EU license due to this requirement. Circle also seeks to remove a 35% cap on exposure to a single sovereign and a 1.5% limit on deposits with an individual bank. The European Commission's MiCA review consultation closed on September 30.