Policy and regulatory outlook
Last year marked a breakthrough year for legal and regulatory clarity for stablecoins. At this stage of market and policy development, if a so-called stablecoin remains unregulated, it is no longer because of a void of pathways to bringing novel forms of digital money inside the perimeter of trusted financial services. The world over, emerging stablecoin rules are effectively enshrining Circle’s way of doing business as law, creating clear requirements for trust, transparency, financial integrity, and other areas.
Outlook for 2025
Outlook for 2025
In 2024, Circle was the first major stablecoin issuer to fully comply with Europe’s far-reaching digital assets rules known as the Markets in Crypto-Asset (MiCA) regulations. With this development and with France as our European regulatory hub, both USDC and EURC enjoy passportability across the EU — a market with more than 445 million consumers that comprises the third largest economy in the world.
Under MiCA, fiat-backed stablecoins (or e-money tokens as they are referred to in Europe) are treated as legal electronic money, which creates a level playing field for payment systems and e-money operators in the EU. Critically, given the novel universally portable nature of stablecoins, Circle’s work together with French and EU regulatory and policy stakeholders has ensured global fungibility of USDC and EURC circulation in the EU. This not only gives EU market participants a stablecoin in their local currency, it also assures dollar-based activity in the EU is comprehensively regulated.
The world over, emerging stablecoin rules are effectively enshrining Circle’s way of doing business as law, creating clear requirements for trust, transparency, financial integrity, and other areas.”
Chief Strategy Officer and Head of Global Policy, Circle
In the U.S., meanwhile, long-awaited legislative progress in both the House and the Senate may now have a pathway to passage under the incoming Trump Administration, which has marked a pro-growth, pro-innovation, and pro-crypto stance. This is not policy work that needs to start from scratch in the U.S., as there is a bipartisan scaffolding in place for what principled U.S. rules can look like not only for stablecoins, but also crypto market structure. Against this backdrop, President Trump has the opportunity to make his campaign promise of asserting U.S. leadership in crypto a reality. By regulating stablecoins, the U.S. can help assure digital dollars become the reserve currency of the internet, much as they are the reserve currency for the world.
Other major economies are expected to follow suit in 2025, including the UK, which under Prime Minister Starmer’s government may now have the political stability in place to make good on longstanding regulatory interest and study of digital asset markets. Relatedly, the UK and U.S. have both embarked on vital work delineating a national payments strategy, for which regulated stablecoins as a digital thrift offer compelling use cases for always-on money, and much needed competition for entrenched payments providers.
Today’s generation of stablecoins and blockchain-based financial services are not disrupting the real economy, but rather extending its reach.”
Chief Strategy Officer and Head of Global Policy, Circle
Brazil, similarly, is expected to bring stablecoins and digital assets inside the regulatory perimeter of an already impressive domestic payments environment, while Hong Kong, one of Asia’s most important financial centers, will develop principled rules for stablecoins. These rules will likely build on Japan’s concept of regulatory reciprocity, while adding to Singapore’s longstanding place as Asia’s fintech hub.
As more global financial centers provide a much needed floor for stablecoin activity in their jurisdictions, critical bridges from the internet financial system to the real economy are being built with banks, asset managers, and regulators around the world. Fears of a fierce contest are giving way to collaboration and clarity of purpose, in which today’s generation of stablecoins and blockchain-based financial services are extending — not disrupting — the reach of the real economy.
Bringing stablecoins inside the regulatory perimeter
Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, explains the crucial role that regulated digital dollars can play.
Global milestones from 2024
Global milestones from 2024
2024 has been defined by several milestone moments in Circle’s support of global regulatory clarity and integration into the firmament of the global financial system.
Circle made history by becoming the first major global stablecoin issuer to comply with the European Union’s new Markets in Crypto-Assets (MiCA) regulatory framework. Announced in Paris on July 1, 2024, Circle has received an Electronic Money Institution (EMI) license from the French financial regulatory authority, ACPR. This EMI license will allow Circle to issue both USDC and EURC in a fully MiCA-compliant manner throughout the EU market, catering to over 450 million residents. Buoyed by this announcement, in early October, EURC became the largest euro-backed stablecoin by total circulation.
In September 2024, Circle unveiled plans for a new global corporate headquarters in the iconic One World Trade Center in Lower Manhattan. Set to open in early 2025, the location — the entirety of the building’s 87th floor — will serve as a convening space for partners, technologists, public leaders, employees, and other global stakeholders.
We are investing in New York. We are investing in America … we feel so privileged to join New York’s thriving community of innovators, technologists, and financial leaders.”
Co-Founder, Chairman, and CEO, Circle
In December 2024, Circle marked a key milestone in its strategic expansion into the Middle East and Africa, announcing its incorporation in the Abu Dhabi Global Market (ADGM). The Middle East and Africa are crucial frontiers to advance financial inclusion and efficiency, and incorporating in the tech forward region will help drive innovative partnerships, financial inclusion, and accessibility.
The Canadian Securities Administrators’ proactive approach in establishing a digital asset regulatory framework reinforces the integrity of digital asset markets, while ensuring continued reliance on USDC across Canada’s burgeoning ecosystem.”
Chief Strategy Officer and Head of Global Policy, Circle
2025 State of the USDC Economy report
