Circle urges EU to ease crypto settlement thresholds

Circle has urged the European Commission to ease restrictions in its proposed Market Integration Package, arguing current thresholds limit stablecoin adoption in institutional markets.

The company said existing rules around e-money tokens risk excluding euro-denominated stablecoins from settlement use, as none currently meet the required market capitalisation thresholds.

“Restricting settlement to ‘significant’ EMTs risks excluding euro-denominated EMTs” and creates a “chicken-and-egg scenario that stifles their growth,”

Circle said.

Circle recommended lowering entry barriers and introducing adaptive thresholds based on market conditions to encourage broader participation and liquidity.

The firm also called for expanding the DLT Pilot Regime to allow crypto-asset service providers to participate more directly in settlement systems.

Circle highlighted its euro-backed stablecoin EURC as a key example, noting that no euro-denominated token currently meets the EU’s threshold requirements.

The proposal reflects broader industry concerns that overly strict regulation could slow stablecoin adoption and limit Europe’s competitiveness in digital finance.