Circle responds to EIOPA's consultation, advocating for detailed risk assessment and alignment with the existing regulatory framework

ChainCatcher news, stablecoin issuer Circle recently submitted a response to the European Insurance and Occupational Pensions Authority (EIOPA) regarding the technical consultation on standard formula capital requirements for crypto asset investments.

Circle advocates for a more nuanced risk assessment approach for tokenized assets such as electronic money tokens (EMTs), believing that their risks are significantly lower than those of other crypto assets.

Circle emphasizes that EIOPA's recommendations should align with existing regulatory frameworks (such as the Capital Requirements Regulation, CRR) to ensure that capital requirements for crypto assets are both robust and conducive to innovation. Circle is committed to continuing collaboration with global regulators to promote the safe and inclusive development of digital finance.