EU Set to Revise MiCA Framework for Stablecoins Amid US Influence

The European Union is set to review its Markets in Crypto Assets (MiCA) framework, which regulates crypto and stablecoin licensing and operation in the Eurozone. This move comes after several EU diplomats declared that the decision has been taken to revise MiCA's provisions on stablecoins, with the goal of allowing excluded foreign stablecoins like Tether to operate.

The review will also consider expanding the framework to regulate emerging tokenized payments and deposits. The current framework left out non-EU stablecoin issuers due to its requirements, a situation that lawmakers aim to address.

This decision is influenced by the passage of the GENIUS Act in the U.S. and the Trump Administration's push for stablecoins. Senior Director of EU Strategy & Policy at Circle, Patrick Hansen, raised concerns about the effects of this on European crypto users, stating that MiCA's current implementation left them 'either unprotected or cut off,' and that this omission encompassed 'a significant gap.'

The review will also address the rise of emerging technologies such as tokenization. An unidentified diplomat told Euronews that reopening the file seems unavoidable at this stage due to recent regulatory and technological developments worldwide.