EU opens MiCA review; negotiator seeks looser stablecoin rules

The European Commission opened a public consultation on the Markets in Crypto-Assets Regulation (MiCA) on May 20. The consultation runs until Aug. 31 and asks individuals, firms and policy bodies whether the rules still fit the digital asset market. The process has a public track for citizens and a technical track for issuers, exchanges, banks and regulators.

MiCA entered into force in 2024 and established harmonized requirements across the EU for asset-referenced tokens, e-money tokens and crypto-asset service providers in all 27 member states. The Commission will use the consultation responses to assess whether the existing token categories, issuance rules and oversight arrangements remain appropriate as market structures change.

Stablecoins are the most contested element of the framework. Industry tracking shows nearly 30 approved fiat-backed tokens under MiCA rules, while the asset-referenced token category has not yet produced an approved product. The Commission will consider feedback on issuance requirements, reserve rules and supervision for these tokens.

The review takes place alongside regulatory moves in other jurisdictions. US lawmakers advanced the GENIUS Act last year. European Central Bank President Christine Lagarde has urged a euro stablecoin response, and several major European banks are preparing a MiCA-compliant euro stablecoin targeted for 2026.

Some smaller crypto firms say compliance costs are pushing activity to jurisdictions seen as more flexible. Market participants point to Germany and the Netherlands as among the stricter enforcers of the rules.

Ondřej Kovařík, the European Parliament negotiator who was Renew Europe’s shadow rapporteur on MiCA and sits on the Parliament’s Committee on Economic and Monetary Affairs, called for more proportional treatment of firms. He argued that large, globally listed exchanges should face different rules from small startups and said MiCA’s stablecoin rules are too strict for many European issuers. He also proposed that the EU create mechanisms to recognize equivalent regimes in countries such as the UK and Switzerland. Kovařík stated, “We should not treat in the same way the global trade crypto exchanges coming from the US and listed on the US stock exchange market with the same rules that we treat a small startup company running a crypto business.”

Brussels has a limited window to collect views before any legislative proposal is drafted. Officials will weigh responses against market developments and international regulatory moves. Possible outcomes range from targeted technical fixes to a wider legislative package often referred to as MiCA 2. The consultation closes on Aug. 31.