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Circle has called for changes to EU stablecoin rules after MiCA left most major global tokens outside its regulatory system. Patrick Hansen said the framework works for local issuers but gives European users limited access to leading stablecoins.
Good to Know
MiCA requires e-money token issuers to hold an EU banking or electronic money licence and meet rules covering reserves, redemption and disclosure. ESMA also maintains a public register of authorized tokens and issuers.
Hansen said the system has attracted real investment, with 35 approved e-money tokens from 21 issuers.
“Real institutions are betting on this space and many large EU corporations will enter over the next 12 months. Implementation is working well for local issuers. Momentum is real,” he said.
However, only USDC, USDG and EURC among the 50 largest stablecoins meet MiCA requirements. Circle issues USDC and EURC, while major alternatives such as Tether USDT remain outside the framework.
EU exchanges have removed or restricted several non-compliant tokens for customers in the European Economic Area. Recent research found that USDT trading contracted on platforms affected by MiCA delistings while USDC gained share.
Circle wants the planned MiCA review to create a practical route for issuers already regulated in trusted markets outside Europe. Hansen argued that applying the full EU licensing model to every foreign company leaves customers either unable to access major tokens or using products beyond EU protection.
A recognition system could let foreign stablecoins enter Europe when their home rules provide comparable safeguards. Circle also wants EU-authorized issuers to compete more easily outside the bloc.
However, European authorities remain cautious. The European Central Bank has warned that global tokens issued across several regions could expose EU reserve pools to redemption demands from outside Europe. EU officials continue to debate how MiCA should treat that multi-issuance model.
Circle already operates USDC and EURC in Europe through its French-regulated entity. Its EURC documentation gives holders a redemption right under MiCA, although the token does not receive deposit guarantee or investor compensation protection.