ChainCatcher report: The European Union (EU) has decided to review its 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 continues consulting on whether to review the MiCA-related stablecoin provisions. This review aims to address issues faced by non-EU stablecoin issuers that are currently unable to obtain authorization under existing requirements. The review is influenced by the passage of the U.S. GENIUS Act and the Trump administration’s push on stablecoin policy. The current framework excludes major foreign stablecoin issuers such as Tether; Patrick Hansen, Senior Director of Strategy and Policy for Circle’s stablecoin, stated that this leaves European crypto users unprotected or isolated. EU diplomats will also assess whether to expand MiCA’s scope to include tokenized payment methods and tokenized deposits. The transition period for MiCA’s application to crypto-asset service providers ended on July 1, and the framework was approved by the EU Council on May 16, 2023, based on market conditions from over three years ago.
EU to Review MiCA Framework, Adjust Rules for Non-EU Stablecoins
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Summary
The EU is set to review its MiCA (Markets in Crypto-Assets Regulation) framework, with a focus on stablecoin regulation for non-EU issuers. Current rules prevent foreign stablecoin providers from obtaining licenses, leaving users exposed. The review will consider U.S. policies such as the GENIUS Act and input from industry figures like Circle’s Patrick Hansen. MiCA’s transition period ended on July 1, and the framework was finalized in May 2023. Discussions also include expanding the law to cover tokenized payments and deposits.
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