Circle’s Call to Action
Circle, a prominent stablecoin issuer, has urged the European Commission to reconsider elements of its proposed Market Integration Package. The company seeks to facilitate the broader adoption of digital euro and dollar tokens by institutional players across Europe. In a statement released on Monday, Circle highlighted the potential of the package to bridge traditional finance and blockchain systems; however, it noted that certain regulations are hindering access for cryptocurrency service providers and are impeding the expansion of euro-pegged tokens.
Concerns and Recommendations
On March 20, Circle submitted its perspectives to the Commission, referring to the package as a substantial advancement toward a digitally-supported financial landscape. Nonetheless, the firm insisted on amendments to enhance access to the market and the settlement processes for digital assets within Europe.
A key concern raised by Circle centered on the capital market thresholds associated with e-money tokens intended for settlement purposes. It contended that restricting the use of e-money tokens to what are referred to as “significant” tokens could inadvertently exclude many euro-based tokens, effectively setting up a “chicken-and-egg scenario” that stifles growth.
The company argued that the existing market cap criteria represent a structural hindrance for institutions looking to utilize e-money tokens within secondary markets. Circle recommended that the Commission adopt a more adaptable approach, setting thresholds based on market engagement and liquidity, rather than adhering to a fixed capital criterion.
Impact on EURC and DLT Pilot Regime
This issue is particularly pertinent for Circle, as it operates EURC, a euro-backed stablecoin designed to comply with the upcoming Markets in Crypto-Assets (MiCA) regulations in Europe. According to its MiCA white paper, EURC qualifies as an e-money token, yet it does not fulfill the current classification of a “significant e-money token.”
Furthermore, Circle called for revisions to the DLT Pilot Regime to expand access for participants beyond just credit institutions and central securities depositories, advocating for the inclusion of crypto-asset service providers. The company believes these adjustments would provide crucial clarity for cryptocurrency market players in Europe, particularly regarding which digital assets can serve as collateral and how blockchain settlements can be integrated within regulated capital markets.
Conclusion
The European Commission initiated this broader Market Integration Package in December 2025, aiming to strengthen the integration of EU capital markets and establish a more robust supervisory framework. Currently, Europe’s primary regulatory framework for cryptocurrencies is governed by the Markets in Crypto-Assets Regulation, which came into effect in late 2024. Circle emphasized that this new package presents an opportunity for the EU to refresh its financial system while ensuring that digital asset regulations remain clear and appropriately scaled for firms operating within the region.
