Circle Advocates for EU Digital Asset Rule Reforms in Market Integration Package

Circle has submitted its feedback on the European Commission's Market Integration Package, providing detailed recommendations on how the EU can better integrate digital assets into its capital markets framework.

The company proposes adaptive thresholds for the DLT Pilot Regime, which would provide clearer guidance for market participants while keeping oversight intact. This approach would take into account market uptake, liquidity conditions, and supervisory assessments.

Circle also supports a targeted approach to centralized supervision, moving oversight of large, cross-border crypto firms that present genuine systemic risk to ESMA. The company notes that national competent authorities are often better positioned to provide agile oversight for non-systemic firms, and reopening the core supervisory model for MiCA could create prolonged regulatory uncertainty.