While the EU’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union opened a consultation to decide whether to review MiCA’s provisions on stablecoins, several EU diplomats have declared that the decision has been taken and will also encompass other emerging technologies.
Key Takeaways
The EU is set to revise the MiCA framework to allow excluded foreign stablecoins like Tether to operate.This regulatory review is heavily influenced by the U.S. GENIUS Act and Trump’s pro-stablecoin policies.Diplomats will also consider expanding the framework to regulate emerging tokenized payments and deposits.In addition, the new framework would also address the rise of emerging technologies such as tokenization, as diplomats would examine whether MiCA should be expanded to include 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 told Euronews.
While MiCA’s transitional period for crypto asset service providers (CASPs) just ended on July 1, the framework was approved by the Council of the EU on May 16, 2023, meaning many of its provisions are based on realities dating from more than 3 years ago, a large period for an innovation-based industry like crypto.
