European Union officials are set to revise the Markets in Crypto-Assets (MiCA) framework, expanding its scope to cover non-EU stablecoin issuers amid US regulatory pressure.
In a significant move towards harmonizing global crypto regulations, European Union (EU) officials have announced plans to revisit and expand the existing Markets in Crypto-Assets (MiCA) framework. This revision is aimed at addressing concerns raised by the recently passed US law on stablecoins, known as the GENIUS Act.
The proposed changes will specifically target non-EU companies issuing stablecoins, ensuring they are subject to EU regulatory standards when operating within its member states. The revised MiCA, dubbed “MiCA 2.0,” is expected to be open for public comment until August 31st, before being further debated and potentially enacted in the coming years.
The need for such revisions arises from pressure exerted by US lawmakers through various regulatory measures. In June, European Commission officials had already initiated a review process of MiCA, including provisions related to decentralized finance (DeFi) and stablecoins. This move reflects a broader effort to align EU regulations with those in the United States, where the GENIUS Act aims to provide clearer guidelines for US-based stablecoin issuers.
The expansion of MiCA’s scope is not limited to just covering non-EU stablecoin issuers; it also includes rules on tokenized payments and deposits. These additions are crucial as they address potential risks associated with crypto asset custody, which EU regulators will review from July through the first half of 2027.
While these regulatory changes may impact how crypto companies operate within the EU, their broader implications extend beyond regional boundaries. The harmonization efforts could lead to a more unified approach to regulating stablecoins and other digital assets globally, potentially influencing market dynamics and investor behavior.
Traders should monitor developments closely as MiCA 2.0 progresses through the legislative process. Key dates include the comment period closing on August 31st and potential further discussions in early 2027. Additionally, stakeholders will need to stay informed about related legislation such as the Digital Asset Market Clarity (CLARITY) Act, which is expected to be debated by US lawmakers.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.