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

Odaily Planet Daily reports that stablecoin issuer Circle is calling for the European Union to accelerate reforms of the digital asset regulatory framework, believing that current progress may slow institutional adoption of tokenized markets.

In feedback on the EU’s “Market Integration Plan,” Circle states that while the plan is an important step toward modernizing capital markets, there are still shortcomings in scalability, regulatory mechanisms, and settlement rules.

Circle supports optimizing the distributed ledger technology (DLT) pilot framework, including expanding the range of assets that can be included and increasing transaction size limits, but notes that existing restrictions still suppress liquidity and institutional participation.

The company recommends introducing a “dynamic threshold” mechanism to allow regulatory parameters to automatically adjust based on market development, rather than relying on periodic legislative updates. Additionally, Circle calls for clarifying the pathway from pilot phase to a formal regulatory system.

Furthermore, Circle emphasizes the need to accelerate reform efforts, warning that slow regulatory progress could lead to tokenized financial activities shifting to faster-growing markets like the United States.