The European Union intends to revise the MiCA (Markets in Crypto-Assets) regulatory framework to introduce stricter controls over the activities of foreign stablecoin issuers operating within the EU. This concerns companies that issue digital assets pegged to fiat currencies but are not registered in the jurisdiction of the European Union. A formal update of the rules may not take place before 2027, but preparatory work has already begun.
The current version of MiCA, which came into force in 2023, does not directly cover non-European stablecoin issuers. This creates a regulatory vacuum that is actively exploited by players from the US, Switzerland, and other regions. The European Commission has already launched a collection of feedback from market participants and experts, which will last until September 30. Based on the data obtained, a decision will be made on the feasibility of revising the regulation.
The main drivers of this process are the rapid growth of dollar stablecoins (e.g., USDT and USDC), the adoption of the GENIUS Act in the US, which regulates stablecoins at the federal level, and the growing concerns of the European Central Bank (ECB) regarding the monetary sovereignty of the euro. The ECB has repeatedly warned that the dominance of dollar stablecoins in the European economy could undermine the EU's control over the money supply and financial stability.
In my opinion, this step by Brussels is a logical continuation of the global trend towards tightening crypto regulation. However, it is worth noting that MiCA is already considered one of the strictest regimes in the world, and its extension to foreign issuers could lead to market fragmentation. If the EU introduces reserve and licensing requirements for non-European stablecoins, this could provoke their withdrawal from the region or a transition to decentralized models. For investors, this means increased uncertainty, but in the long term, such an approach could protect European users from risks associated with unregulated issuers.