EU Plans MiCA Overhaul to Address Non-EU Stablecoins and New Tokenized Finance
AI Market Summary
EU diplomats indicate MiCA will likely be reopened to address licensing constraints that sidelined major non-EU stablecoin issuers and to extend coverage toward tokenized payments/deposits. Alignment pressure from US stablecoin policy (e.g., GENIUS Act) raises odds of a more permissive framework, improving legal clarity and access for eurozone users. Near term, this reduces perceived regulatory tail risk for crypto market structure, especially stablecoin rails.
Impact level
● Medium
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The European Union is moving toward a revision of its Markets in Crypto-Assets (MiCA) rulebook to revisit how stablecoins are licensed and operated across the euro area, according to EU diplomats.
The EU’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union has opened a consultation on whether MiCA’s stablecoin provisions should be amended. Diplomats say the political decision to reopen the framework has already been made, and the scope is expected to extend beyond stablecoins to other emerging technologies.
At the center of the review is the treatment of non-EU stablecoin issuers that have been unable to obtain authorization under existing requirements. Lawmakers are expected to consider changes that could allow major foreign stablecoins, including Tether, to operate under an updated regime.
Diplomats also point to external pressure from U.S. policy developments, citing the GENIUS Act and the Trump administration’s pro-stablecoin stance as factors shaping the EU debate.
Circle's Senior Director of EU Strategy & Policy, Patrick Hansen, warned that the current MiCA rollout leaves European crypto users "either unprotected or cut off," calling the exclusion of large foreign issuers "a significant gap."
The planned review may also broaden MiCA to capture newer forms of tokenized finance. Diplomats said the EU will assess whether the framework should cover tokenized means of payment and tokenized deposits.
"Reopening the file seems unavoidable at this stage, not only in light of the position expressed by several European institutions (not least the ECB), but also to cater for the most recent regulatory and technological developments worldwide," an unidentified diplomat told Euronews.
MiCA's transitional period for crypto-asset service providers (CASPs) ended on July 1. The framework was approved by the Council of the EU on May 16, 2023, and parts of the regime reflect market conditions from more than three years ago, a meaningful lag for a fast-moving sector such as crypto.
