The European Union is initiating a procedure to revise the Markets in Crypto-Assets (MiCA) regulation in order to close a regulatory loophole for foreign stablecoin issuers operating within the EU. A formal update to the rules is not expected before 2027, but preparatory work has already begun.
Currently, MiCA does not provide for direct oversight of non-European companies issuing stablecoins for European users. This creates an asymmetry: local issuers are subject to strict requirements, while foreign players can operate in a gray area. The European Commission is collecting feedback from market participants until September 30, after which it will decide whether to begin a formal revision of the regulation.
Triggers for Reform
Among the key factors pushing Brussels to act is the rapid growth of dollar-backed stablecoins, such as USDT and USDC, which dominate European circulation. The adoption of the GENIUS Act in the United States, aimed at regulating stablecoins at the federal level, intensifies jurisdictional competition. Additionally, the European Central Bank has expressed concerns about the monetary sovereignty of the euro: the widespread use of dollar-denominated tokens could undermine the ECB's control over the money supply and the region's financial stability.
From my perspective, the revision of MiCA is a logical but belated step. EU regulators have long ignored the de facto presence of global stablecoins, relying on voluntary compliance with the rules. However, without a robust enforcement mechanism, foreign issuers will continue to circumvent restrictions by using jurisdictions with lenient regulations. If the European Commission truly wants to protect the euro, it will need not only to rewrite MiCA but also to establish interstate cooperation to control cross-border stablecoin flows. The market is waiting for clarity, and 2027 may prove to be too distant a horizon for such a dynamic industry.