EU Stablecoin Regs Leave Top Coins in Compliance Limbo

The European Union's Markets in Crypto-Assets regulation is meant to bring order to the stablecoin market, but so far, it seems few issuers are playing by the rules. According to Circle Senior Director of EU Strategy and Policy Patrick Hansen, only three out of the top 50 stablecoins globally, USDC, USDG, and EURC, meet the requirements set forth in MiCA.

This means that despite 21 entities having issued around 35 regulated e-money tokens across the EU under the new framework, the largest stablecoins by user holdings remain outside of compliance. As a result, exchanges face restricted listings, liquidity pools may need to be rebalanced, and traders within the bloc are left with limited options.

Hansen emphasized that the current situation is not set in stone, as the regulation is expected to undergo review. Circle argues that this review should focus on improving competitiveness, strengthening global coordination between regulators, and eventually creating a formal recognition regime for foreign-regulated stablecoins that meet equivalent standards.