EU Set to Revisit MiCA, Weighs Tweaks for Non-EU Stablecoin Issuers

ChainCatcher reports that the European Union is preparing to reassess its regulatory regime for cryptoassets and stablecoins, as the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union continues consultations on whether to reopen MiCA's stablecoin provisions. The review is intended to address hurdles facing non-EU stablecoin issuers, many of which cannot secure authorization under current requirements. The push comes as U.S. policy momentum builds following passage of the GENIUS Act and the Trump administration's efforts to advance a stablecoin agenda. Under the existing framework, large overseas issuers such as Tether are effectively excluded. Patrick Hansen, Senior Director of Strategy and Policy for Circle's stablecoin, said the situation leaves European crypto users either unprotected or cut off. EU diplomats are also expected to consider whether MiCA's scope should be broadened to cover tokenized payment instruments and tokenized deposits. MiCA's transition period for cryptoasset service providers ended on July 1. The framework was approved by the EU Council on May 16, 2023, reflecting market conditions from more than three years earlier.