Circle urges the EU to accelerate distributed ledger reforms and expand the application of stablecoin settlements.

PANews reported on March 24 that, according to The Block, stablecoin issuer Circle is urging European policymakers to expedite the update of the EU's digital asset framework, arguing that delays could hinder institutional adoption of the tokenized market. In its feedback submitted on March 20 regarding the European Commission's proposed market integration plan, Circle stated that the plan is a "meaningful step" towards modernizing capital markets, but gaps remain in scalability, regulation, and settlement.

Circle largely supports proposed amendments to the EU's distributed ledger technology pilot program, including expanding the range of eligible assets and raising the trading volume threshold, but states that current restrictions still constrain liquidity and institutional participation. The company recommends introducing "adaptive" thresholds linked to market conditions and calls for accelerating the transition from the pilot phase to permanent rules. Regarding settlement, Circle welcomes proposals to include e-money tokens in cash settlements but warns that limiting use to "significant" tokens could exclude euro-denominated stablecoins and slow adoption. The company also calls for allowing crypto service providers (not just banks and central securities depositories) to offer settlement accounts and pushes for clearer rules allowing stablecoins to be used as collateral.