Hyperliquid and Circle Make Bold Regulatory Pushes as EU Revisits MiCA Framework

Hyperliquid and Circle are actively lobbying European regulators during the critical MiCA review period, each pushing distinct policy priorities that could reshape how crypto derivatives and stablecoins operate across the EU.

Hyperliquid's policy center is advocating for perpetual futures to fall under MiFID II classification rather than existing crypto-specific rules. This regulatory positioning would essentially reclassify derivatives trading under traditional financial instrument frameworks. The move signals Hyperliquid's strategy to legitimize perps trading within established financial infrastructure, potentially opening doors to institutional participation and clearer compliance pathways for exchanges operating across EU jurisdictions.

Circle, the USDC stablecoin issuer, is taking a different angle. In their formal filings to the European Commission's ongoing MiCA review, the company is directly challenging one of MiCA's most restrictive provisions: the bank deposit reserve requirement floor. This requirement mandates stablecoin issuers maintain sufficient banking relationships and liquidity reserves—a provision Circle argues creates unnecessary friction for stablecoin adoption and innovation.

The Stakes in MiCA 2.0

These aren't casual policy suggestions. MiCA (Markets in Crypto-Assets Regulation) is the EU's flagship crypto regulation framework, and its first formal review is generating intense lobbying from industry players. The European Commission is actively considering amendments, making this a genuine window for regulatory influence. Both companies recognize that the rules being written now will determine competitive dynamics for years.

Hyperliquid's push for MiFID II classification would have significant implications for crypto analysis and trading infrastructure. If successful, it would align derivatives trading with how equities and traditional financial products are regulated—potentially streamlining things for institutional traders but adding compliance overhead for retail platforms.

Circle's focus on stablecoin reserves speaks to a real pain point. The current bank deposit floor creates capital efficiency challenges for stablecoin issuers, particularly smaller competitors trying to establish market presence. Loosening these requirements could accelerate stablecoin adoption across Europe, though regulators remain concerned about systemic risk and consumer protection.

Market Intelligence Angle

From a portfolio and trading perspective, these regulatory developments matter. If Hyperliquid succeeds with its perps positioning, we could see more sophisticated derivatives products flowing through regulated EU channels—benefiting traders with better access but potentially increasing compliance costs. If Circle wins on the stablecoin front, expect more competitive stablecoin offerings and tighter integration between crypto and traditional banking rails.

Both lobbying efforts reflect broader industry maturation. Rather than fighting regulation, major crypto players are now negotiating within it—a significant shift from the "move fast and break things" era. This cooperative approach with regulators may actually accelerate mainstream adoption of crypto products.

The European Commission's final decisions aren't imminent, but spring 2024 through mid-2025 will be critical. Watch for formal comment periods and parliamentary debates where these positions will clash with regulator concerns about market manipulation, consumer protection, and systemic stability.