According to Odaily, Circle co-founder and CEO Jeremy Allaire has raised concerns about the regulations in the Markets in Crypto-Assets (MiCA) framework regarding stablecoin reserves. Allaire highlighted the challenges faced by companies in the industry in maintaining stable relationships with banks, stating, 'Our industry finds it difficult to maintain stable relationships with banks, and MiCA actually introduces a lot of banking risks.'
MiCA mandates that companies issuing stablecoins pegged to fiat currencies must hold 30% of their cash reserves in multiple EU bank accounts. For significant electronic money tokens, this requirement can go up to 60%. Some experts speculate that the upcoming MiCAII regulations will follow and update the current legislation, adding more provisions related to decentralized finance.