Circle's executive has raised concerns about potential regulatory challenges in the EU due to overlapping requirements from the Markets in Crypto-Assets (MiCA) regulation and the Payment Services Directive 2 (PSD2). Starting March 2026, stablecoin firms in the EU will need to secure both MiCA cryptocurrency licenses and PSD2 payment licenses to provide e-money token custody and transfer services. This dual licensing requirement imposes a minimum capital threshold of 250,000 euros, significantly increasing compliance costs. Industry experts caution that these stringent regulations could stifle euro stablecoin adoption and drive providers out of the EU market.