Circle urges EU to preserve multi-issuance model for stablecoins

Circle submitted comments on the European Commission’s consultation on MiCA, or the Markets in Crypto-Assets regulation, and proposed preserving the multi-issuance structure for global stablecoins. According to Circle, about 30 electronic money tokens, or EMTs, have been approved under MiCA, but only USDC, USDG and EURC among the top 25 stablecoins by global market capitalization are currently subject to MiCA rules. Circle argued the current structure should remain in place so an EU entity authorized under MiCA and an entity authorized by an overseas regulator can jointly issue a single globally circulating stablecoin. Circle also recommended a framework under which the regulator in the issuer’s home jurisdiction would take primary supervisory responsibility, while the EU would handle regulatory equivalence assessments and recognition of entities by the European Banking Authority, or EBA.