BitGo CEO Mike Belshe has raised concerns over the Markets in Crypto Assets (MiCA) framework, warning that it poses systemic risks to the stablecoin ecosystem in Europe. Belshe argues that MiCA's requirement for stablecoin issuers to hold reserves in fractional banks links crypto markets to traditional banking vulnerabilities. He highlights that the EU's deposit insurance cap of €100,000 per depositor is inadequate for stablecoin issuers managing billions in reserves, likening it to a structural gap. Belshe points to the 2023 incident where the collapse of Silicon Valley Bank led to the depegging of USDC, underscoring the potential for banking sector failures to impact crypto markets. He stresses the need for robust regulation to protect stablecoin reserves from similar risks in Europe, warning that without proper measures, the region could face significant financial instability.