Circle’s Head of Policy advocates for MiCA broadening crypto regulations

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Why Europe‘s Crypto Regulations Could Be the Next Big Thing!

In the ever-turbulent waters of cryptocurrency, where regulations seem about as clear as mud, Circle’s Head of Global Policy, Dante Disparte, has stepped forward, brandishing a legal framework like a knight in shining armor. He asserts that we definitely need more regulatory clarity, presumably because investors are tired of playing hopscotch with the law.

During a delightful fireside chat at Paris Blockchain Week (yes, a fireside chat… in Paris, how utterly charming), Disparte shared his musings with TRM Labs’ Global Head of Policy, Ari Redbord, on April 8. He painted a picture where clear regulations could invite more investors, financial institutions, and various stakeholders into the crypto bubble—a place that, let’s face it, has always needed a bit of adult supervision.

“The regulation works. If international investors are attracted to invest not just in France but to gain from the legal and regulatory clarity that MiCA provides, that creates an environment of legal certainty,” said Disparte. Legal certainty? Well, that’s a refreshing change!

He believes Europe holds the golden key to define what “universally portable internet-based money and financial services” really means—all thanks to the Markets in Crypto-Assets Regulation (MiCA). Because who wouldn’t want to wrap their heads around that mouthful of jargon?

Circle’s representative didn’t stop there! He’s been lobbying for a couple of stablecoin acts in the United States—the GENIUS Act and the STABLE Act—hoping they can bring the same level of clarity that MiCA provides for Europe. Who knew regulatory bills could sound like a game show contestant lineup?

“When you put them together you get a Stable Genius. A framework that up levels to MiCA so that we have transatlantic harmonization and regulatory reciprocity, as opposed to create a race to the bottom even across the U.S. and the European partnership,” stated Disparte. A “Stable Genius”? I see what you did there, Dante!

Moreover, Disparte lauded European regulators who have decided to classify MiCA-compliant stablecoins as e-money tokens. How exciting! Except, it comes with a little twist: the framework prohibits these tokens from earning yield for customers. Because nothing says “financial innovation” quite like a good old-fashioned ban.

“We agree. We think interest in stablecoin land is a secondary market innovation. And if you want the innovation to work as stated, it has to be a unit of measure, a medium of exchange and a store of value just like a physical dollar or a physical euro,” said Disparte. Who knew stablecoins had such lofty aspirations?

Introduced in June 2023, the MiCA laws rolled out strict regulations for crypto firms and stablecoin issuers—one of which includes a no-yield clause. This harsh reality forced big players like Tether (USDT) and Circle to buckle up and play by these new rules in Europe if they wanted to stay in the game. And voilà! In July 2024, Circle became the first stablecoin company to snag an Electronic Money Institution license from French regulators, giving them the go-ahead to market their MiCA-compliant stablecoin across Europe. Talk about a regulatory win!

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2025-04-08 16:47