Summary
The EU has reportedly already decided to review the Markets in Crypto Assets (MiCA) framework to address the issue of non-EU stablecoin issuers excluded from licensing, including Tether. The review, influenced by the U.S. GENIUS Act and Trump's pro-stablecoin policies, would also examine whether MiCA should expand to cover new tokenized means of payment and deposits. The recalibration reflects the challenge of keeping a 2023-era framework relevant to a rapidly evolving industry.
Key Points
- The exclusion problem: The current MiCA framework left the 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," calling the omission "a significant gap."
- The catalyst: The review is heavily influenced by the U.S. GENIUS Act passage and the Trump Administration's push for digital assets and stablecoins. The EU is reacting to the competitive global dynamics of crypto regulation — if the U.S. opens its stablecoin market while the EU excludes major issuers, the EU risks losing stablecoin activity and users.
- The consultation: DG FISMA opened a consultation on whether to review MiCA's provisions on stablecoins, but EU diplomats have declared the decision has been taken. "Reopening the file seems unavoidable at this stage," an unidentified diplomat told Euronews, "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."
- The tokenization expansion: The new framework would also address emerging technologies such as tokenization — diplomats will examine whether MiCA should be expanded to include new tokenized means of payment and deposits. This would extend MiCA's scope into the rapidly growing institutional tokenization space.
- The timing issue: MiCA was approved by the Council of the EU on May 16, 2023, meaning many of its provisions are based on realities dating from more than 3 years ago — a large period for an innovation-based industry like crypto. The transitional period for CASPs ended July 1, 2026.
- The competitive stakes: The review reflects a global competitive dynamic. If the EU adjusts MiCA to allow non-EU stablecoins and cover tokenization, it could reclaim a leadership position in crypto regulation and attract stablecoin and tokenization activity. If it fails to adapt, the U.S. and Asia hubs may capture the growth.
- Implications for stakeholders: For stablecoin issuers like Tether, the review could reopen access to the EU market. For exchanges and fintechs, the review signals the EU regulatory landscape is about to change. For the industry, the review demonstrates that comprehensive crypto regulation must be iterative and responsive to global developments.