The EU will proceed with the MiCA review and plan to adjust the operating rules for non-EU stablecoins

Comparatively, the European Union (EU) has decided to review the current regulatory framework for crypto assets and stablecoins, even though the European Commission's Director-General for Financial Stability, Financial Services and Capital Markets is still consulting on whether to review MiCA-related stablecoin provisions. The review aims to address the issue that non-EU stablecoin issuers are unable to obtain licenses due to current requirements.

The review will be influenced by the passage of the US GENIUS Act and the Trump administration's push for stablecoin policies. The current framework doesn't include major foreign stablecoin issuers, including Tether, Patrick Hansen, Circle's senior director of stablecoin strategy and policy, said it left European crypto users unprotected or isolated. EU diplomats will also evaluate whether to expand the MiCA scope to include tokenized payment methods and tokenized deposits. MiCA's transition period for crypto asset service providers ended on July 1, and the framework was approved by the European Council on May 16, 2023, with some provisions based on market conditions over three years ago.