Jeremy Allaire, CEO and co-founder of Circle, discussed the potential for his firm’s USDC and EURC stablecoins during an interview on Monday. The discussion touched upon the increasing competition within the crypto space as the Markets in Crypto Assets (MiCA) framework in the European Union (EU) becomes increasingly stringent.
Circle has recently achieved an Electronic Money Institution (EMI) license, a crucial necessity to provide dollar- and euro-pegged crypto tokens in the EU under MiCA. This crucial development permits Circle to roll out its euro-pegged EURC stablecoin to EU clientele. As Allaire announces, both USDC and EURC are now available in compliance with the EU’s new stablecoin regulations, making Circle the earliest global stablecoin issuer to satisfy MiCA’s regulations.
In separate commentary, Allaire highlighted Circle’s commitment to compliance as a key competitive advantage. He emphasized the firm’s pledge to uphold the regulations set out by MiCA for their EURC stablecoin and USD Coin. He believes the combination of MiCA’s encouragement of a digitally asset-friendly Europe, along with Circle’s robust compliance record, gives his company a distinct advantage.
However, toughening regulations have seen some crypto exchanges delist their Euro-denominated stablecoins in a quest to achieve MiCA compliance. For instance, crypto exchange Bitstamp has notably removed Euro Tether (EURT) stablecoin, to join fellow exchanges Binance, Kraken, OKX and Uphold in shedding EURT.
Tether, the issuer of USDT Stablecoin, stated it doesn’t presently aim to comply with MiCA, a factor causing restrictions or cancellation on exchanges. Despite these challenges, Allaire expects more competition due to the increasing clarity added by the new regulations. Richard Teng, CEO of Binance, similarly lauded the progress and called for more players in the sector. Increased competition is on the horizon with the enforcement of MiCA regulations, which will also see firms being held accountable for maintaining stricter risk and compliance management.