Circle Seeks EU Regulatory Reforms for Crypto Market Growth

Circle has submitted its recommendations to the European Commission to ease crypto rules, aimed at boosting market growth. According to the company, overly strict requirements for market participants limit institutional access, reducing liquidity and slowing down sector growth.

The Market Integration Package (MIP) is a key development in the EU's digital financial markets. Circle views this as an important step but points out several issues with the current framework.

One of the main concerns is the restrictions for e-money tokens (EMT). The company believes that these rules limit their use in payments due to high capitalization requirements, acting as a structural barrier. This prevents new products from entering the market.

Circle also highlights restrictions under the DLT Pilot Regime. Currently, only banks and central securities depositories have access to the infrastructure, effectively excluding crypto service providers. The company proposes expanding access to licensed crypto firms, which would accelerate blockchain integration into the financial system.