Circle CEO: The requirements regarding stablecoin company reserves in MiCA are concerning, as MiCA actually introduces a lot of banking risks

ChainCatcher news, Circle co-founder and CEO Jeremy Allaire expressed concerns about the requirements for stablecoin companies' reserves in MiCA, stating: "Companies in our industry struggle to maintain stable relationships with banks, and MiCA actually introduces a lot of banking risks."

It is reported that MiCA requires companies issuing stablecoins pegged to fiat currencies to hold 30% of their cash reserves in multiple EU bank accounts, with this ratio rising to as much as 60% for significant electronic money tokens. Some experts speculate that MiCA II regulations will follow and update the current legislation, adding more provisions regarding decentralized finance.