The European Union has decided to review its existing framework for crypto assets and stablecoins, even as the European Commission's directorate for financial stability, financial services and capital markets union is still consulting on whether to revisit the stablecoin provisions in MiCA. The aim is to solve a licensing problem: non-EU stablecoin issuers cannot obtain permission under current requirements. The review will be shaped by the passage of the US GENIUS Act and the Trump administration's push for stablecoin policy. Existing rules do not cover major foreign issuers such as Tether. Patrick Hansen, Circle's senior director for stablecoin policy and strategy, said this leaves European crypto users unprotected or walled off. EU diplomats will also assess whether to broaden MiCA to include tokenised payment methods and tokenised deposits. The transition period for crypto-asset service providers ended on 1 July. MiCA was approved by the Council of the EU on 16 May 2023, and some provisions are based on market conditions from more than three years ago.
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 the stablecoin provisions in MiCA should be reviewed.
The review will target a licensing problem. Non-EU stablecoin issuers cannot obtain permission under existing requirements. The review will also be influenced by the passage of the US GENIUS Act and the Trump administration's push for stablecoin policy.
In the current framework, major foreign stablecoin issuers such as Tether are not included. Patrick Hansen, Circle's senior director for stablecoin policy and strategy, said this leaves European crypto users unprotected or isolated.
EU diplomats will additionally assess whether to expand MiCA's scope to cover tokenised payment methods and tokenised deposits.
MiCA's transition period for crypto-asset service providers ended on 1 July. The framework was approved by the Council of the EU on 16 May 2023, and some provisions are based on market conditions from more than three years ago.
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