Stablecoin Issuer Circle Bullish on European Union After Crypto Asset Law Proposal

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October 23, 2023

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The US-based stablecoin issuer Circle is turning bullish on the crypto industry in European Union (EU), calling the Markets in Crypto Assets (MiCA) law “a regulated path for stablecoins in Europe.”

Speaking at the Blockchain for Europe Summit in Brussels, Belgium on Tuesday, Patrick Hansen, Circle’s EU policy head, made it clear that with the EU now bringing regulatory clarity to the stablecoin market, a “move from speculation to utility” can finally happen for crypto.

He added that the with the euro being the second-most used currency worldwide, the incentives for users to adopt euro stablecoins will now only grow, and said we now have “a regulated path for stablecoins in Europe.”

The comment was shared on Twitter by Teana Baker-Taylor, Vice President of Policy & Regulatory Strategy at Circle:

@circle’s @paddi_hansen on the #euro #stablecoin opportunity:

“There is now a regulated path for #stablecoins in Europe. The #euro is the second largest world currency & remittance asset. As we move from speculation to utility, the incentives grow to use euro stablecoins. pic.twitter.com/7C4UmHEnu0

— Teana Baker-Taylor (@TeanaTaylor) October 25, 2022

Circle launched its euro stablecoin, Euro Coin (EUROC) as an Ethereum-based ERC-20 token in already in June, and is now well-positioned to benefit from the new EU regulations.

Commenting on the launch at the time, Circle CEO Jeremy Allaire said on Twitter that the euro stablecoin would enjoy similar regulatory protections as the company’s dollar-backed stablecoin, USDC.

“Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro,” Allaire said.

3/ Like USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle.

— Jeremy Allaire (@jerallaire) June 16, 2022

Still, Circle’s new Euro Coin has yet to take off to the same extent as the much more popular US dollar stablecoins. As of Wednesday, EUROC had a market capitalization of just $76m, and is ranked as number 281 on CoinMarketCap’s ranking of the largest cryptocurrencies.

After passing a vote by the European Council earlier in October, the new MiCA law is now headed for the European Parliament in the coming weeks. The next step after that will be to translate the full text into the more than 20 official languages of the EU. The bill includes a 12-18-month adaptation period meant to help companies adjust to the new regulations.

The law is expected to take effect in 2024 if it passes in the European Parliament.

The EU first reached an agreement on MiCA in July this year. Back then, representatives of the crypto industry, such as Rebecca Rettig, a board member at the crypto-friendly bank Silvergate, applauded the effort to “provide clarity in the crypto space” while also noting that there is “more work to be done.”