Circle Urges EU to Accelerate DLT Reforms and Relax Stablecoin Settlement Rules

Odaily Planet Daily News – Stablecoin issuer Circle has called on the EU to expedite reforms to the digital asset regulatory framework, arguing that the current pace may hinder institutional adoption of tokenized markets. In its feedback on the EU's "Market Integration Package," Circle stated that the proposal is an important step toward modernizing capital markets but highlighted shortcomings in scalability, regulatory mechanisms, and settlement rules. Circle supports optimizing the Distributed Ledger Technology (DLT) pilot framework, including expanding the range of eligible assets and raising transaction size limits, but noted that existing restrictions continue to suppress liquidity and institutional participation. The company suggested introducing a "dynamic threshold" mechanism, allowing regulatory parameters to automatically adjust based on market developments rather than relying on periodic legislative updates. Additionally, Circle urged for a clear pathway to transition from the pilot phase to a formal regulatory system. The company emphasized the need to accelerate the pace of related reforms, warning that slow regulatory progress could lead to tokenized financial activities shifting to faster-developing markets like the United States.