Circle says USDC is the only one of the world’s ten largest stablecoins that currently complies with the European Union’s Markets in Crypto-Assets (MiCA) regulation. Under the MiCA framework, stablecoin issuers must segregate their reserves, issue regular attestations, comply with the redemption rights of customers, and adhere to governance standards. The 60% reserve rule that kept Tether outThe most challenging hurdle for large issuers is the reserve requirement under MiCA. This decision aligns with our broader strategic direction, considering the evolving regulatory frameworks surrounding stablecoins in the European market. MiCA promotes regulated issuance of euro-denominated stablecoins, but dollar-backed stablecoins continue to lead in crypto trading, payments, and liquidity.