Circle’s USDC Push: Urgent EU Crypto Reforms Needed to Compete with US
Circle has pressed European Union policymakers to expedite digital asset framework reforms, warning that delays risk diverting institutional activity to more crypto-friendly jurisdictions like the U.S. The stablecoin issuer's submission to the European Commission highlights growing industry frustration with restrictive DLT pilot thresholds and calls for adaptive rules tied to market liquidity conditions.
The company endorsed proposed updates to blockchain-based trading systems but argued current asset eligibility and volume limits remain artificially constrained. Circle's recommendations emphasize three pressure points: accelerating MiCA-compliant stablecoin adoption, expanding settlement infrastructure, and introducing dynamic regulatory thresholds that scale with market maturation.
This push comes as global competitors implement clearer crypto frameworks. The firm noted that without proportionate reforms, Europe risks becoming a rule-taker rather than a rule-maker in digital finance.
