title: Circle’s Head of Global Policy Dante Disparte Believes the Crypto Space Needs More Regulatory Clarity

input: Circle’s Head of Global Policy Dante Disparte believes the crypto space needs more regulatory clarity in the form of frameworks like Europe’s MiCA.

Circle’s Head of Global Policy Dante Disparte believes the crypto space needs more regulatory clarity in the form of frameworks like Europe’s MiCA.

During a fireside chat session at Paris Blockchain Week with TRM Labs’ Global Head of Policy Ari Redbord on April 8, Disparte emphasized the importance of clear regulation in helping bring more investors, financial institutions, and stakeholders into the crypto space.

“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.

Therefore, he believes Europe has the best chance to “enshrine what universally portable internet-based money and financial services could mean” through its Markets in Crypto-Assets Regulation or MiCA framework.

In fact, the Circle (USDC) representative stated that his team has been trying to advocate for two stablecoin acts in the United States, the GENIUS Act and STABLE Act, to reach the level of legal clarity that MiCA is able to provide for European markets.

“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.

Moreover, Disparte said that Circle supports European regulators’ decision to equate MiCA-compliant stablecoins to an e-money token, in which the framework prohibits the token from generating yield for customers who hold stablecoin.

Moreover, Disparte said that Circle supports European regulators’ decision to equate MiCA-compliant stablecoins to an e-money token, in which the framework prohibits the token from generating yield for customers who hold stablecoin.

“We agree. We think interest in stablecoin land is a secondary market innovation. And if you want the innovation to work as stated, if you want the bill of goods 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.

Introduced in June 2023, the MiCA stablecoin laws brought about strict regulations and standards for crypto firms and stablecoin issuers, one of them is a ban on offering stablecoin interests or yield.

As a result, stablecoin issuers like Tether (USDT) and Circle had to adjust their operations by complying to the MiCA laws if they wish to continue operating within the European regions. In July 2024, Circle became the first stablecoin company to secure an Electronic Money Institution license from French regulators, allowing them to market their MiCA-compliant stablecoin across Europe.