The European Union is exploring the possibility of revising the MiCA (Markets in Crypto-Assets) regulation to extend its jurisdiction to stablecoin issuers from third countries operating in the European market. A formal update to the regulatory framework is not expected before 2027, but discussions have already intensified at the level of EU diplomats.
Currently, MiCA does not provide for direct regulation of foreign stablecoin issuers, creating loopholes for participants not registered in the EU but actively interacting with European users. The European Commission is accepting feedback from interested parties until September 30, after which a decision will be made on whether to begin a formal review of the regulation.
Several factors are driving the discussion. First, the rapid growth of dollar-backed stablecoins such as USDT and USDC, which dominate global liquidity and put pressure on European digital currencies. Second, the adoption of the GENIUS Act in the United States, which creates clearer rules for stablecoins under U.S. jurisdiction, potentially increasing competition for European projects. Third, the European Central Bank has expressed concerns about the monetary sovereignty of the euro, highlighting the risk of the euro being replaced by dollar-backed stablecoins in the crypto ecosystem.
Analytical commentary: The EU's initiative to revise MiCA is a logical step amid growing global competition for stablecoin regulation. However, delaying the formal update until 2027 could leave the European market vulnerable to more flexible jurisdictions. If the EU does not accelerate the process, we risk seeing further dollarization of cryptocurrency flows, which would undermine the euro's position as a unit of account in the digital economy.