EU to Advance MiCA Review, Targeting Non-EU Stablecoin Rules
The European Union is set to review and potentially revise its Markets in Crypto-Assets (MiCA) framework, with a focus on stablecoin licensing rules for non-EU issuers, according to recent statements from EU diplomats.
European diplomats have confirmed that the EU will modify MiCA to address the issue of non-EU stablecoin issuers, such as Tether, which were previously excluded from licensing under the current requirements. The review is reportedly influenced by the passage of the U.S. GENIUS Act and the pro-stablecoin policies of the Trump Administration.
The decision to revisit MiCA comes despite an ongoing consultation by the European Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union on whether the framework should be amended. A diplomat told Euronews that “reopening the file seems unavoidable at this stage,” citing positions expressed by several European institutions, including the European Central Bank, as well as recent regulatory and technological developments worldwide.
The new framework is also expected to address emerging technologies such as tokenized payments and deposits. Senior Director of EU Strategy & Policy at Circle, Patrick Hansen, warned that MiCA’s current implementation left European crypto users “either unprotected or cut off,” describing the omission as “a significant gap.”
MiCA’s transitional period for crypto asset service providers ended on July 1. The framework, approved by the Council of the EU on May 16, 2023, is now seen by some as outdated given the rapid pace of innovation in the crypto industry.
At the same time, prominent Bitcoin advocate Michael Saylor commented on U.S. Senate delays regarding crypto legislation, stating that “Bitcoin doesn’t need CLARITY.” Senator Cynthia Lummis also criticized U.S. crypto rules as “remaining broken” amid the ongoing CLARITY Act debate. Separately, Bitcoin and Ether exchange-traded funds recorded $220 million in inflows, led by BlackRock, and Senate Majority Leader John Thune has moved to force a September vote on the CLARITY Act.