Circle has asked the European Commission to change parts of the proposed Market Integration Package, saying current rules could block wider use of e money tokens and limit the role of crypto asset service providers in Europe’s tokenized markets.
The company said it submitted its response on March 20 and focused on settlement rules, the DLT Pilot Regime, and access for firms operating under crypto rules.
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The main issue is the settlement threshold for e money tokens. Circle said limiting settlement use to only “significant” EMTs would exclude euro denominated tokens such as EURC stablecoin.
The company said no euro denominated EMT is close to the proposed market cap threshold. It called that setup a “chicken and egg scenario” because a token may need more use to grow, yet the rule would hold back that use until the token is already large.
Circle also said the EU package could still help create more legal clarity. In its statement, the company described the proposal as a step toward a more digital financial system, while asking for more workable rules on collateral, settlement, and market participation.
That position places Circle EU crypto rules feedback inside the wider EU effort to connect traditional finance with blockchain based market infrastructure.
Circle EU crypto rules focus on e money tokens and EURC stablecoin
Circle’s first major point concerns e money tokens, the EU category used for certain stablecoins under MiCA regulation.
The company said the current settlement threshold under the relevant securities framework would create a barrier for euro stablecoins.
As a result, it asked the Commission to replace fixed thresholds with a more flexible system based on market uptake, liquidity, and supervisory review.
That matters for EURC stablecoin, Circle’s euro backed token. Circle says USDC and EURC are MiCA compliant in the EEA.
However, it also says no euro denominated EMT has reached the threshold that would allow broader settlement use under the current proposal. In simple terms, Circle argues that the market cannot scale if the rules only work for products that are already large.
Circle tied that problem to market liquidity as well. It said the threshold is a structural barrier to institutional participation and secondary market liquidity.
Therefore, the company wants the EU to let euro stablecoins enter settlement activity earlier, instead of waiting for a market cap level that no current EMT has reached.
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DLT Pilot Regime and crypto asset service providers remain key issues
Circle’s submission also targets the DLT Pilot Regime, the EU framework that lets firms test tokenized trading and settlement systems within set limits.
The company said the current model is too narrow because it restricts cash accounts mainly to credit institutions and central securities depositories. Circle wants that scope widened to include crypto asset service providers.
That request matches a broader EU debate over how tokenized markets should work in practice. Legal analysis of the Market Integration Package says the Commission is already considering changes to make the DLT Pilot Regime easier to use and more scalable.
Those possible changes include higher limits and a simpler path for smaller operators. Circle’s response pushes that discussion further by asking for direct room for crypto firms inside the settlement structure.
The wider legal backdrop is MiCA regulation, which started applying in stages in 2024 and has applied in full since December 30, 2024.
Circle’s response shows that even with MiCA in force, major questions remain around how e money tokens, crypto asset service providers, and tokenized settlement systems fit into Europe’s capital markets framework.
That is why Circle’s latest filing focuses less on broad crypto policy and more on specific market rules that affect settlement access, collateral use, and infrastructure design.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 24, 2026 • 🕓 Last updated: March 24, 2026
