According to CoinMeta, Circle calls on the European Commission to abolish the requirement for stablecoins to hold fixed deposits in banks when reviewing the regulation of the crypto asset market. Circle states that forcing digital currency token issuers to keep a certain proportion of their reserves in commercial banks exposes them to credit and counterparty risks. Current regulations require that regular digital currency token issuers hold at least 30% of their reserves in commercial bank deposits, while those classified as important stablecoins are required to hold at least 60%. Circle suggests replacing these thresholds with minimum liquidity requirements based on the liquidity of the reserve assets. This proposal is similar to the responses received during consultations with the European Central Bank and the central banks of the 27 EU countries. Circle's stance stems from its own banking risk experiences; USDC temporarily lost its dollar peg in March 2023 due to holding $3.3 billion in reserves at Silicon Valley Bank. Circle hopes that regulators will pay more attention to the liquidity of the assets behind stablecoins, rather than requiring issuers to keep a fixed proportion of their reserves in banks.