Circle Warns MiCA Rules Cut off EU Users From Top Stablecoins

The final implementation of all MiCA provisions has created a regulatory sandbox that leaves Europe disconnected from major stablecoin providers, according to Circle’s Senior Director of EU Strategy & Policy, Patrick Hansen. He stressed that a review is necessary to make the framework more competitive and globally aligned.

MiCA has led to the licensing of 35 e-money tokens from 21 issuers, showing interest in the space. However, strict rules have excluded most top stablecoin issuers, including Tether, with only USDG, USDC and EURC passing the bar. “The rest sits outside MiCA’s perimeter – meaning EU users are either unprotected or cut off. For a framework designed to bring global stablecoin markets under its EU supervision, that’s a significant gap,” Hansen said.

He believes an upcoming review of MiCA should address this issue by allowing foreign issuers to operate without facing the same rules as local counterparts. On May 20, the EU’s Directorate-General for Financial Stability opened a public consultation to review whether the framework remains fit for purpose. The process remains open until September 30 and specifically addresses electronic money tokens.

Source: https://news.bitcoin.com/stablecoins/circle-warns-mica-rules-cut-off-eu-users-from-top-stablecoins/