Circle urged European Union (EU) policymakers to accelerate reforms to the digital asset framework, The Block reported on March 23. On the European Commission’s market integration package, Circle said the plan was a “meaningful step” in modernising capital markets but still had limits on scalability, supervision and settlement.
Circle broadly supported changes to the EU’s distributed ledger technology (DLT) pilot regime, while calling for an expansion of eligible assets and an increase in trading-volume thresholds. It stressed that current limits continue to constrain liquidity and institutional participation. It argued for “adaptive” standards aligned with market conditions rather than periodic legislative updates, and said a clear path is needed to move from the pilot phase to permanent rules.
It also warned that the EU should pursue rapid reforms separately from a comprehensive legislative timetable, or activity could move to the United States and elsewhere. It stressed that the use of stablecoins that comply with the Markets in Crypto-Assets (MiCA) regulation should be expanded for securities settlement. It said restricting settlement access to “important” tokens risks excluding euro-based stablecoins.
Chi-gyu Hwang
delight@d-today.co.kr