Circle: MiCA leaves EU users cut off from major stablecoins
Circle’s Patrick Hansen says MiCA licensed 35 e-money tokens but excluded major issuers such as Tether, leaving many EU users unprotected or cut off. EU consultation runs until Sept. 30.
Patrick Hansen, senior director for EU strategy and policy at Circle, stated the Markets in Crypto Assets rules have approved 35 e-money tokens from 21 issuers but excluded major stablecoin providers such as Tether. He warned the gap leaves many European users either unprotected or cut off from widely used tokens. Hansen noted that only USDG, USDC and EURC have met MiCA’s compliance tests so far.
Hansen acknowledged MiCA has closed regulatory gaps around unlicensed exchanges in Europe but said the law sets operating requirements that most large stablecoin issuers cannot meet. He proposed a pragmatic path to allow foreign issuers to serve EU users without forcing them to follow the identical rules applied to local e-money providers. “Real institutions are betting on this space and many large EU corporations will enter over the next 12 months. Implementation is working well for local issuers. Momentum is real,” he added.
The European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union opened a public consultation on May 20 to assess whether MiCA remains fit for purpose. Responses are being accepted through Sept. 30. One section of the review specifically addresses electronic money tokens and their issuers, indicating regulators will consider how to treat foreign stablecoin providers.
Under MiCA, issuers of e-money tokens must meet capital, reserve, governance and transparency requirements intended to protect consumers and financial stability. Industry participants say those rules allowed 35 tokens to secure licences but can be burdensome for large non-EU issuers, effectively preventing many from offering services in the bloc unless they meet local conditions.
Market participants say excluding major global stablecoins can reduce access to liquidity, common trading pairs and payment options for EU users and may limit partnerships and cross-border services for firms in the bloc. Hansen warned, “The rest sits outside MiCA’s perimeter — meaning EU users are either unprotected or cut off.”
The consultation provides a formal channel for feedback that could lead to adjustments in how electronic money tokens and foreign issuers are treated. Until any changes are adopted, Circle and other firms say European users may continue to face reduced access to some of the largest global stablecoins.
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