Circle recommends easing market cap thresholds for e-money tokens like its EURC stablecoin to boost adoption in Europe.
Stablecoin issuer Circle has submitted feedback to the European Commission, urging adjustments to the proposed Market Integration Package to facilitate greater use of crypto assets in financial systems.
In its statement, Circle praised the package as a step toward a digitally enabled financial system but highlighted areas for improvement, including reforms to the DLT Pilot Regime and expanded access for crypto-asset service providers.
Recommendations on E-Money Tokens
Circle specifically recommended lowering the market capitalization threshold under the Central Securities Depositories Regulation, stating that it restricts settlement for euro-denominated e-money tokens like its EURC stablecoin.
The company argued that no euro-denominated e-money token has reached the current threshold, creating a barrier that stifles growth and institutional participation in secondary markets.
Circle suggested adopting more adaptive thresholds based on factors such as market uptake and liquidity, as outlined in their feedback submitted on March 20.
Additionally, Circle called for expanding the DLT Pilot Regime to include crypto-asset service providers beyond just credit institutions and central securities depositories.
This push comes amid the implementation of the Markets in Crypto-Assets Regulation, effective December 2024, which aims to provide legal clarity for crypto assets in Europe.
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