Hyperliquid and Circle Just Filed to Rewrite Europe's Crypto Rulebook

Two of crypto's biggest players quietly submitted filings to the European Commission that could redraw the regulatory lines governing how Europeans trade perpetual futures and hold stablecoins.

Hyperliquid's policy group is pushing the EU to classify perpetual futures under MiFID II, the existing financial instruments framework, rather than leaving them in a grey zone under MiCA. Circle, meanwhile, is targeting one of MiCA's most controversial requirements: the rule forcing stablecoin issuers to park a meaningful chunk of reserves in bank deposits rather than short-term government securities.

Why This Filing Matters More Than It Looks

MiCA only just went fully live in December 2024, but the European Commission opened a review process almost immediately, and the industry smelled blood. These aren't lobbying wish lists. These are technical regulatory filings that land directly inside the Commission's formal review window.

Hyperliquid's push to bring perps under MiFID II is significant because MiFID II is a framework Europe actually knows how to enforce. It has passporting rights, trading venue categories, and investor protection rules already baked in. If perps get classified there, Hyperliquid and protocols like it could operate across all 27 EU member states under a single licence structure. That is a massive commercial unlock, and it happens to also give regulators the oversight handles they have been demanding.

Circle's target is more aggressive. The bank deposit reserve floor inside MiCA was designed to ensure stablecoin issuers could not blow up like a money market fund. But Circle's argument is that forcing USDC reserves into bank deposits actually increases risk, not reduces it, because banks can fail while short-term government bonds cannot run. This is a direct shot at one of MiCA's core prudential assumptions.

What Is Actually at Stake

Europe is the only major jurisdiction with a fully operational crypto regulatory framework right now. How MiCA evolves in this review cycle will set the template that other regulators, including the UK, Singapore, and potentially a reshaped US framework, will look at for reference.

If Circle wins on the reserve question, expect stablecoin issuers globally to cite the EU precedent. If Hyperliquid secures a MiFID II pathway for perps, it legitimises the entire on-chain derivatives category in a way no court ruling or SEC guidance has managed.

What to Watch

Monitor the European Commission's formal response timeline and any signals from ESMA on the MiFID II classification question. Stablecoin holders using USDC in Europe and traders on any perps platform with EU exposure should treat this review cycle as live regulatory risk, in either direction.

The rules are not set. The window is open. And the biggest names in the space are already inside the room.