EU Starts MiCA Review, Weighs Easing Stablecoin Rules
Summary
- The European Union said it will revise stablecoin-related provisions in its comprehensive crypto regulatory framework, MiCA.
- The European Commission said it is reviewing changes to the MiCA framework to address barriers preventing offshore stablecoin issuers from entering the European market.
- The EU said a MiCA review is unavoidable as it seeks to reflect US policies aimed at fostering the stablecoin market and recent technological advances such as the tokenization of deposits and payment instruments.
Forecast Trend Report by Period
The European Union is set to revise stablecoin-related provisions in its Markets in Crypto-Assets regulation, known as MiCA.
Bitcoin.com reported on August 7 that the European Commission is considering changes to the MiCA framework to address issues facing offshore stablecoin issuers that have been shut out of the European market because they do not meet licensing requirements. Patrick Hansen, Circle's head of EU strategy and policy, previously said the current MiCA regime had created a major regulatory gap that left European users either unprotected or unable to transact.
Recent policy shifts in the US are also increasing pressure on the EU to amend the law. The US has stepped up efforts to foster the stablecoin market, beginning with passage of the GENIUS Act. The EU plans to use the review to reflect recent technological developments, including the tokenization of deposits and payment instruments.
A review of MiCA is unavoidable given demands from major institutions including the European Central Bank, as well as global regulatory and technological developments, an EU official said.
