EU diplomats told Euronews the MiCA review will address non-EU stablecoin issuers left out of current rules, as well as tokenization. The decision comes as the US pushes its own stablecoin legislation.
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The European Union has decided to reopen its Markets in Crypto Assets framework, several EU diplomats told Euronews, with a specific focus on bringing non-EU stablecoin issuers under regulation. The decision comes even as the European Commission's financial services unit formally opened a public consultation on whether to review the rules.
The current MiCA text, approved by the Council of the EU in May 2023, left the largest foreign stablecoin issuers – including Tether – outside its licensing requirements. That exclusion created what Patrick Hansen, senior director of EU strategy and policy at Circle, called a “significant gap” that left European users “either unprotected or cut off.”
Diplomats said the review would also address the rise of tokenization, examining whether MiCA should be expanded to cover new tokenized means of payment and deposits. “Reopening the file seems unavoidable at this stage, not only in light of the position expressed by several European institutions (not least the ECB), but also to cater for the most recent regulatory and technological developments worldwide,” an unidentified diplomat said.
The decision to revise the framework was influenced by passage of the GENIUS Act in the United States and the Trump administration's push for stablecoin legislation, the diplomats added.
MiCA's transitional period for crypto asset service providers ended July 1. The framework itself dates from realities more than three years old – a long stretch for an innovation-driven industry, several market participants noted. The review process will determine whether non-EU stablecoin issuers like Tether will need to seek a license under revised rules, and whether tokenized deposits and payment instruments will fall under MiCA's remit.
The European Commission's consultation runs through the summer. The actual legislative process, once started, is expected to take 12 to 18 months. The outcome will shape how stablecoins and tokenized assets operate across the Eurozone, and whether large foreign issuers can continue serving EU customers without a local license.
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