Circle urges EU to fast-track DLT reforms, widen stablecoin settlement rules

Circle has submitted feedback to the European Commission's proposed Market Integration Package, urging policymakers to fast-track updates to the EU's digital asset framework to prevent delays from slowing institutional adoption of tokenized markets. While supporting changes to the Distributed Ledger Technology (DLT) Pilot Regime, Circle argued that current limits constrain liquidity and proposed adaptive thresholds tied to market conditions, along with a clearer path to permanent rules. A key focus was expanding the role of MiCA-compliant stablecoins in securities settlement, advocating for wider access to settlement accounts beyond banks and central securities depositories. Furthermore, Circle pushed for narrower EU supervision by ESMA, limiting it to large, cross-border firms, and requested clearer rules for using stablecoins as collateral.

(Source：The Block)