The European Union is initiating a large-scale revision of the Markets in Crypto-Assets (MiCA) regulatory framework, aimed at including foreign stablecoin issuers operating within the EU under its regulatory scope. A formal update to the regulation is not expected before 2027, but preparatory work has already begun.
The current version of MiCA leaves a significant gap: issuers registered outside the EU are not directly subject to its provisions. This creates a loophole for non-European players who actively promote their stablecoins in the European market without complying with local reserve and transparency requirements.
The European Commission is collecting feedback from stakeholders until September 30, after which it will decide on officially opening the process of revising the regulation. Three key factors are driving Brussels to action: the explosive growth of dollar-denominated stablecoins, the adoption of the GENIUS Act in the US, which creates a competitive jurisdiction, and growing concerns from the European Central Bank (ECB) over the monetary sovereignty of the euro.
Particular concern is raised by the dominance of stablecoins pegged to the US dollar, which are effectively pushing the euro out of the digital payment space. The ECB sees this as a direct threat to control over the money supply and the region's financial stability.
My professional assessment: the revision of MiCA is not just a technical adjustment, but a signal that the EU is moving from the phase of adopting crypto assets to the phase of protecting its own currency system. If the amendments are adopted, foreign stablecoin issuers will face the need to either obtain a full European license or leave the market. This could radically change the balance of power in the stablecoin segment, making it less global and more regionalized.