Circle has called on the European Commission to lower barriers for institutions working with crypto-asset service providers, responding to its proposed Market Integration Package (MIP), which aims to strengthen Europe’s capital markets.
In a statement on Monday, Circle described the MIP as a “meaningful step” toward a more digitally integrated financial system, while highlighting areas that need refinement. The company’s feedback, submitted on March 20, focused on improving the distributed ledger technology (DLT) Pilot Regime and enabling broader participation in what the Commission classifies as e-money tokens (EMTs).
Europe’s primary crypto framework, the Markets in Crypto-Assets Regulation, came into force in December 2024. However, some legal experts, including Yuriy Brisov of Digital & Analogue Partners, have criticized it as complex and inconsistently implemented across member states.
Circle argued that the MIP could improve legal clarity, particularly by defining how crypto-assets may be used as collateral. It also recommended lowering market capitalization thresholds under the Central Securities Depositories Regulation to allow EMTs to be more widely used in settlement.
According to Circle, limiting settlement to only “significant” EMTs risks sidelining euro-denominated tokens, creating a “chicken-and-egg” problem that hinders adoption and reduces liquidity.
Push to expand euro stablecoins
Alongside its flagship USD Coin, Circle offers a euro-backed, MiCA-compliant stablecoin, EURC, in Europe. However, the company noted that no euro-denominated EMT currently comes close to meeting the required market cap thresholds.
Circle proposed introducing more flexible criteria—such as market adoption and liquidity conditions—paired with regulatory oversight, to better support growth in the sector.
The firm also criticized restrictions in the DLT Pilot Regime, which currently limit access to cash accounts to credit institutions and central securities depositories. Expanding access to include crypto-asset service providers, it said, would foster greater participation.
Circle concluded that the MIP represents a pivotal opportunity for Europe to modernize its financial system, arguing that clearer and more balanced regulation could better connect traditional finance with blockchain infrastructure and unlock greater efficiency and liquidity across the region.
