Summary
The European Union has reportedly already decided to review the Markets in Crypto Assets (MiCA) framework, even as its Directorate-General for Financial Stability, Financial Services and Capital Markets Union opens a consultation on whether to review MiCA's provisions on stablecoins. European diplomats have revealed the EU is set to modify MiCA to address the issue of non-EU stablecoin issuers that have been excluded from licensing, including Tether. The review would also be influenced by the passage of the U.S. GENIUS Act and the Trump Administration's pro-stablecoin push.
Key Facts
- EU decided to review MiCA, targeting rules for non-EU stablecoin issuers (e.g., Tether)
- DG FISMA opened a consultation on whether to review MiCA's stablecoin provisions
- Review influenced by U.S. GENIUS Act passage and Trump's pro-stablecoin policies
- Current framework left largest foreign stablecoin issuers, including Tether, out of consideration
- Circle's Patrick Hansen warned MiCA's current implementation left EU users "either unprotected or cut off"
- New framework would also address tokenization — whether MiCA should expand to new tokenized means of payment and deposits
- Diplomat: "Reopening the file seems unavoidable at this stage... to cater for the most recent regulatory and technological developments worldwide"
- MiCA approved by Council of the EU on May 16, 2023 — provisions based on realities dating from more than 3 years ago
- MiCA's transitional period for CASPs ended July 1, 2026
Why It Matters
The EU's decision to review MiCA signals a major recalibration of the world's most comprehensive crypto regulatory framework. The current framework excluded non-EU stablecoin issuers like Tether, cutting off EU users from the largest stablecoins — a situation that the review aims to address. The review's timing, influenced by the U.S. GENIUS Act and Trump's pro-stablecoin policies, reflects a global competitive dynamic in crypto regulation. The proposed expansion to cover tokenized payments and deposits would extend MiCA's scope into the rapidly growing tokenization space. For stablecoin issuers, exchanges, and fintechs, the review means the EU regulatory landscape is about to change — with potential to open the EU market to previously excluded players while extending regulation to new asset classes.