The European Union’s proposed Markets in Crypto Assets (MiCA) law has made stablecoin issuer Circle optimistic about its prospects.
The legal text of the EU bill was finalized earlier this month. Crypto companies will be subject to stricter rules if the bill is adopted. According to a Circle executive, at least they will know what those rules are, during Tuesday’s Blockchain for EU Summit in Brussels.
“Europe now has a regulated path for stablecoins,” said Patrick Hansen, Circle’s EU policy head. In the transition from speculation to utility, euro stablecoins gain more incentives as they become a more popular remittance asset.
According to a law professor, an EU draft law could regulate NFTs as securities It’s hardly surprising that USD Coin issues such sentiments. In June, circle launched Euro Coin (EUROC) as an Ethereum ERC-20 token.
“The Euro Coin is being issued under a regulated framework for money transmission, with full reserves in Euro, under the same statutes that regulate USDC,” Circle CEO Jeremy Allaire said at the time.
As of Tuesday afternoon, EUROC’s market capitalization of $76 million was unchanged from the middle of August. As stablecoins are designed to hold a 1:1 peg with their backing fiat currency, their market caps tend to reflect circulation. Users can buy or redeem stablecoins to create or destroy tokens.
MiCA will go to the European Parliament for its final vote in the coming weeks after the text of the law is set. In the event that the law passes, it will take effect in 2024.
According to Hansen, MiCA had three goals: setting regulatory standards, harmonizing the market, and protecting consumers. It is an excellent step in the right direction that the legislative process has produced this outcome.”