Circle Presses EU to Ease Stablecoin Settlement Rules and Expand DLT Pilot

Overview

• Circle, which filed formal feedback March 20, is urging changes to the European Commission’s Market Integration Package that will set how tokenized trading and settlement work after MiCA.
• At the center of its push, Circle wants lower market-cap bars for e‑money tokens in securities settlement, noting no euro stablecoin, including its EURC, meets the current “significant” threshold.
• The firm proposes adaptive thresholds tied to real market uptake and liquidity so rules adjust over time and Europe does not see activity migrate to faster-moving U.S. venues.
• Circle backs updates to the EU’s DLT Pilot Regime and asks for higher trading and asset limits to let institutions build liquidity on blockchain-based market rails.
• It also wants crypto-asset service providers allowed to hold the DLT Pilot’s settlement cash accounts, which are now limited to banks and central securities depositories.