EU Stablecoin Rules Cut Off European Users, Circle Warns

Circle, a well-known player in the crypto space, has expressed concerns over the EU's MiCA rules, which have led to disruptions in the stablecoin ecosystem. According to Patrick Hansen, Senior Director of EU Strategy & Policy at Circle, the current implementation of MiCA has left European users unprotected or cut off from top stablecoins.

While MiCA's provisions have facilitated the licensing of 35 e-money tokens from 21 issuers, most top stablecoin issuers, including Tether, are unable to comply with its operating requirements. Only USDG, USDC, and EURC have passed the framework's bar.

Hansen believes that an upcoming review of MiCA should address this issue, suggesting a more pragmatic approach to allow foreign issuers to operate without facing the same rules as local counterparts.

The EU has opened a public consultation to review whether the current framework remains fit for purpose, with the process remaining open until September 30. This consultation specifically addresses electronic money tokens and their issuers.