Stablecoin issuer Circle has urged the European Commission to ease certain provisions in its proposed Market Integration Package (MIP), as the firm seeks to accelerate institutional adoption of digital euro and dollar-backed tokens across the region.
In its recent feedback, Circle described the MIP as a positive step toward strengthening Europe’s financial markets but warned that some aspects of the framework could unintentionally limit the growth of digital assets.
The company emphasized the need for a more flexible regulatory approach that supports innovation while maintaining financial stability.
Circle’s recommendations focus on reducing barriers that restrict participation from crypto-native firms and institutional players.
The firm argued that easing thresholds and expanding access could help unlock broader use of stablecoins for payments, settlements, and cross-border transactions within the European financial system.
The company is particularly advocating for policies that enable greater adoption of both euro-denominated and U.S. dollar-backed stablecoins.
Circle believes these digital assets can play a key role in modernizing financial infrastructure by improving efficiency, lowering costs, and enhancing liquidity across markets.
The push comes at a time when Europe is positioning itself as a global leader in digital asset regulation, following the implementation of the Markets in Crypto-Assets (MiCA) framework.
However, industry participants have raised concerns that overly restrictive rules could slow innovation and drive activity to more crypto-friendly jurisdictions.
Circle also highlighted the importance of ensuring that stablecoins can integrate seamlessly into existing financial systems.
The firm called for clearer guidelines around settlement processes and interoperability, which it says are essential for institutional-scale adoption.
As competition between euro and dollar-backed stablecoins intensifies, Circle’s proposals reflect a broader industry effort to shape regulatory frameworks that balance oversight with growth.
The European Commission is expected to review stakeholder feedback before finalizing the package.
