EU targets MiCA overhaul as US GENIUS Act reshapes stablecoin rules

The US is also advancing the Digital Asset Market Clarity Act. The bill passed two House committees and is expected for a Senate vote in July before lawmakers leave for their state work period. It would create a federal framework for digital assets.

The European Commission's separate consultation, known as MiCA 2.0, is open for feedback until Aug. 31. It covers DeFi and stablecoins. The Commission will review the feedback before proposing changes. The consultation is part of the broader effort to update the regulatory rules.

For traders, the timeline is straightforward. The ESMA review starts this month and runs through 2027. The MiCA 2.0 consultation closes Aug. 31. The GENIUS Act is already law. The US market structure bill is up for a Senate vote in July. Traders should watch for ESMA announcements during the review period.

The GENIUS Act requires stablecoin issuers to hold 1:1 reserves in cash or cash equivalents. MiCA already has similar requirements. The EU review aims to resolve the conflict between the two sets of rules. The review will also consider extending MiCA to cover tokenized payments and deposits.