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

According to ME News, on March 24 (UTC+8), stablecoin issuer Circle is urging European policymakers to accelerate updates to the EU's digital asset framework, stating that delays could hinder institutional adoption of tokenized markets. In its feedback, 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 regime, including expanding the scope of eligible assets and raising trading volume thresholds, but stated that current restrictions still constrain liquidity and institutional participation. The company suggests introducing "adaptive" thresholds linked to market conditions and calls for accelerating the transition path from pilot phases 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 provide settlement accounts and pushes for clearer rules allowing stablecoins to be used as collateral. (Source: ME)