LATEST: 🇪🇺 Circle's head of EU policy Patrick Hansen says MiCA should adopt an "equivalence" rule, letting foreign stablecoin issuers rely on home-country rules instead of requiring an EU entity.

What happened

Circle's head of EU policy, Patrick Hansen, said the MiCA rules should contain an “equivalence” provision that would let foreign stablecoin issuers follow the regulations of their home country instead of setting up a separate EU‑based entity.

Confirmed

Global impact / market context

An equivalence provision would lower the cost and complexity for non‑EU stablecoin providers to operate in Europe, increasing competition and the amount of digital money available to users while still allowing regulators to oversee the activity.

Analyst inference

Europe is finalising the Markets in Crypto‑Assets (MiCA) framework, the first comprehensive set of rules for crypto assets, and the debate over an equivalence rule is part of the ongoing policy discussions shaping those regulations.

Analyst inference

What to watch

1. EU regulators’ final decision on an equivalence rule, because adoption will directly determine whether foreign stablecoin issuers need an EU licence or can rely on their home‑country compliance. Proposed
2. Responses from major non‑EU stablecoin issuers, such as whether they adjust market entry plans to seek EU licences or rely on equivalence, which will affect their presence in European markets. Proposed
3. Potential legal challenges or lobbying by EU‑based crypto firms concerned about competitive fairness, which could delay or alter the final MiCA rules and impact market dynamics. Proposed

Evidence

• x.com