EU Set to Reopen MiCA Framework Amid Stablecoin Regulatory Push

The European Union (EU) is set to review its Markets in Crypto Assets (MiCA) framework, which governs crypto and stablecoin licensing and operation in the Eurozone. The decision has already been made by EU diplomats, despite a consultation being opened on whether to revise MiCA's provisions on stablecoins.

The review will address the issue of non-EU stablecoin issuers that have been excluded from licensing due to the requirements established by MiCA. This includes Tether, the largest foreign stablecoin issuer, which has been left out of consideration.

Senior Director of EU Strategy & Policy at Circle, Patrick Hansen, raised concerns about the effects of this on European crypto users, stating that they are 'either unprotected or cut off' due to MiCA's current implementation. The review will also examine whether MiCA should be expanded to include new tokenized means of payment and deposits.

The EU is heavily influenced by the U.S. GENIUS Act and Trump's pro-stablecoin policies, which has led to a push for stablecoins in the region. The current 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 three years ago.