Circle warns Europe risks falling behind US if crypto reforms are delayed

USDC issuer Circle has warned that delays in reforming Europe's cryptocurrency regulations could slow institutional investment and shift the token market's center of gravity to the United States, The Block reported. While Circle described the European Commission's market integration package as a positive step toward modernizing capital markets, it stated that further enhancements are necessary to foster real market expansion. Specifically addressing the European Union's proposed reforms to its Distributed Ledger Technology (DLT) pilot program, Circle said it largely agrees with expanding the scope of assets and raising transaction limits. However, the company emphasized that current regulations still constrain liquidity and institutional participation. Circle recommended introducing an "adaptive limit" that adjusts flexibly to market conditions and called for a clear roadmap to transition the DLT program from its pilot phase to a permanent framework. The company also expressed concern that a slow pace of reform could cause the industry to gravitate toward the U.S., where on-chain market infrastructure is rapidly advancing.