Circle asks EU MIP to loosen EUR-linked EMT settlement thresholds
Circle has urged the European Commission to amend its Market Integration Package (MIP) to loosen eligibility thresholds for EUR-linked electronic money tokens (EMTs), including its euro stablecoin EURC. Circle argues the draft “settlement market-cap” rule is so restrictive that no euro-denominated EMT— including EUR-linked EMTs— would meet the cutoff, creating a “chicken-or-egg” problem that can slow adoption, limit institutional participation, and weaken secondary-market liquidity.
Circle also asks for two specific changes: (1) widen the DLT Pilot Regime so cash accounts are not limited to credit institutions and central securities depositories, allowing crypto-asset service providers to participate; and (2) make EMT settlement criteria more flexible by using market-acceptance and liquidity metrics rather than a rigid size threshold.
While MiCA has been effective since Dec 2024, Circle says interpretation remains difficult and enforcement varies by country. It views MIP as a path to add legal clarity— including eligible collateral for blockchain settlement in regulated capital markets— after it submitted feedback on March 20. For traders, the near-term price impact depends on how quickly and how far the Commission revises MIP; a more permissive framework would be a longer-term support for EUR stablecoin liquidity via EUR-linked EMTs.
Neutral
This proposal is aimed at improving eligibility and access for EUR-linked EMTs, which could enhance EUR stablecoin liquidity over time—an underlying tailwind that is generally constructive. However, the change is still only a request tied to MIP drafting and possible threshold revisions by the European Commission. Until the final rules are published, the market may not reprice EURC immediately. So the likely effect is more about future pipeline clarity (and potentially broader participation via the DLT pilot) than an immediate, direct price catalyst.