The EU will advance the MiCA review and plans to adjust the operating rules for non-EU stablecoins

The European Union (EU) has decided to review the current regulatory framework for crypto assets and stablecoins, even as the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union is still consulting on whether to review the MiCA-related stablecoin provisions. This review aims to address the issue of non-EU stablecoin issuers being unable to obtain licenses due to current requirements.

The review will be influenced by the passage of the U.S. GENIUS Act and the Trump administration's push for stablecoin policies. The current framework does not include major foreign stablecoin issuers, including Tether, and Patrick Hansen, Senior Director of Stablecoin Strategy and Policy at Circle, stated that this leaves European crypto users unprotected or isolated. EU diplomats will also assess whether to expand the scope of MiCA to include tokenized payment methods and tokenized deposits. The transition period for MiCA, aimed at crypto asset service providers, ended on July 1, and the framework was approved by the EU Council on May 16, 2023, with some provisions based on market conditions from over three years ago.