The European Union has decided to review its existing crypto asset and stablecoin framework, even as the European Commission's financial stability, financial services and capital markets union directorate-general is still consulting on whether to review the MiCA stablecoin provisions. The review is meant to address the difficulty non-EU stablecoin issuers face in obtaining a licence under current requirements. It will be influenced by the passage of the US GENIUS Act and the Trump administration's stablecoin policy. The existing framework does not cover major foreign stablecoin issuers such as Tether. Patrick Hansen, senior director of stablecoin strategy and policy at Circle, said this leaves European crypto users unprotected or isolated. EU diplomats will also assess whether to expand MiCA to include tokenised payment methods and tokenised deposits. The MiCA transition period for crypto-asset service providers ended on July 1. The framework was approved by the European Council on May 16, 2023, and parts of it reflect market conditions from more than three years ago.
EU settles on a review of crypto and stablecoin rules
The European Union has decided to review its current framework for crypto assets and stablecoins. The European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union is still consulting on whether to review the MiCA provisions covering stablecoins.
One aim of the review is to address the situation of non-EU stablecoin issuers that cannot obtain a licence under today's requirements. US policy is a factor. The review will be influenced by the passage of the GENIUS Act and the Trump administration's push on stablecoins.
Stablecoin issuers and the scope question
Major foreign stablecoin issuers, including Tether, sit outside the current framework. Patrick Hansen, senior director of stablecoin strategy and policy at Circle, said that leaves European crypto users unprotected or isolated.
EU diplomats will also consider widening MiCA's scope to cover tokenised payment methods and tokenised deposits.
Timeline
The transition period for crypto-asset service providers under MiCA ended on July 1. The European Council approved the framework on May 16, 2023. Some provisions rest on market conditions from more than three years ago.
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