EU Starts MiCA Review, Raising Prospect of Easier Stablecoin Rules

The European Union is starting a review of stablecoin 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 problems facing offshore stablecoin issuers that have been shut out of the European market for failing to meet licensing requirements. Patrick Hansen, Circle’s EU policy head, previously said the current MiCA regime has created a major regulatory gap that leaves European users unprotected or blocks transactions.

Recent policy shifts in the U.S. are also increasing pressure on the EU to revise the law. The U.S. has moved quickly to promote 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.

An EU official said a review of MiCA is unavoidable given demands from major institutions, including the European Central Bank, as well as broader global trends in regulation and technology.