Circle Urges MiCA Review to Boost European Stablecoin Market

Circle has submitted its response to the European Commission's targeted consultation on the review of the Markets in Crypto-Assets Regulation (MiCA), which aims to position Europe as one of the most dynamic and liquid stablecoin markets in the world.

The company, as the largest MiCA-authorised e-money token issuer, has submitted its response based on two years of operating experience and offers a detailed perspective on where the framework is working well and where targeted refinements could help it deliver more fully on its original goals.

MiCA has given Europe a head start in stablecoin regulation, with around 30 e-money tokens authorised under the regulation. However, only three of the top 25 stablecoins globally by market capitalisation are currently MiCA-regulated (USDC, USDG, EURC).

Circle recommends preserving multi-issuance as an available structure and formalising the safeguards already available to manage its risks. The company also proposes a longer-term architecture for equivalence and recognition of foreign-regulated stablecoins.