Circle is urging the European Union to speed up reforms for distributed ledger technology

Circle Urges EU to Speed Up Digital Asset Rules—Warns Delays Could Stall Institutional Adoption

Circle is pressing Europe to move faster. The stablecoin issuer warned that delays in updating the EU's digital asset framework could slow institutional adoption of tokenized markets. In feedback submitted on the European Commission's market integration package, Circle called it a "meaningful step" but said gaps remain in scalability, regulation, and settlement.

The company backs proposed changes to the EU's DLT pilot regime—like expanding eligible assets and raising volume caps—but says current limits still hold back liquidity and institutional players. It's pushing for "adaptive" thresholds tied to market conditions and a quicker path from pilot to permanent rules.

On settlement, Circle likes the idea of including e-money tokens in cash settlement but warns that limiting it to "significant" tokens could leave out euro-denominated stablecoins and slow adoption. It also wants crypto service providers—not just banks and CSDs—to be allowed to offer settlement accounts, and clearer rules for using stablecoins as collateral. The message: don't let good intentions get stuck in slow rulemaking.