Circle Internet Group (NYSE:CRCL) is urging European policymakers to accelerate updates to the EU’s digital asset framework, but CRCL plunged over 6% on Tuesday morning.

The EU Reform Push

Circle submitted feedback March 20 on the European Commission’s proposed Market Integration Package, calling the plan a meaningful step toward modernizing capital markets but noting gaps around scalability, supervision, and settlement.

Circle largely backed proposed changes to the EU’s Distributed Ledger Technology Pilot Regime, including expanding eligible assets and raising volume thresholds. 

However, the company argued current limits continue to constrain liquidity and institutional participation.

The firm proposed introducing adaptive thresholds tied to market conditions rather than relying on periodic legislative updates. 

Circle also urged regulators to fast-track changes outside the broader legislative timeline, echoing concerns that delays could push activity toward the U.S., where on-chain market infrastructure is advancing more quickly.

Stablecoin Settlement Expansion

Circle called for expanding the role of MiCA-compliant stablecoins in securities settlement.

The company welcomed proposals to recognize e-money tokens for cash-leg settlement but warned that limiting access to only “significant” tokens could exclude euro-denominated stablecoins and slow adoption.

Circle also pushed for allowing crypto service providers to offer settlement accounts, not just banks and central securities depositories. 

The current structure adds friction and complexity, the company argued.

The stablecoin issuer pushed for a narrower scope for centralized EU supervision and suggested limiting ESMA oversight to large, cross-border firms while leaving smaller players under national regulators.

Circle also called for clearer rules allowing stablecoins to be used as collateral, pointing to parallel efforts in the U.S. and UK.

CRCL Tests $130 Breakout

Circle Internet Group stock is failing at major horizontal resistance around $125-$130 after a dramatic V-shaped recovery from near $50 in February. 

The stock has more than doubled in roughly five weeks, blowing through all four major EMAs.

The 200 EMA, which capped price for months during the decline, was reclaimed with barely a pause, the hallmark of genuine momentum.

A 4-hour close above $130 with RSI holding above 60 would confirm the breakout and open a run toward $140-$150.

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