The EU aims to reform MiCA as the US GENIUS Act reshapes stablecoin regulations
The European Union has started preparing changes in its Markets in the framework of Crypto-Assets after the United States issued the GENIUS Act, with regulators expected to review the rules of stablecoin and other provisions of digital assets from 2027.
Summary
- The EU is preparing to review MiCA after the US GENIUS Act changed the regulatory landscape of stablecoins around the world.
- Officials may extend MiCA to cover non-EU stablecoin issuers, token payments, and token deposits.
- ESMA will review the risk of crypto custody in licensed CASPs during the first half of 2027.
According to a report published by Euronews on Wednesday, European Commission officials are preparing to revisit parts of the Market in Crypto-Assets (MiCA) regulation as the bloc responds to changes in the global regulatory environment.
The report said the review will focus on how non-EU companies issuing stablecoins should be treated under the existing framework following the passage of the US Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
Stablecoin oversight extends beyond existing MiCA regulations
As part of the planned review, EU officials are expected to consider extending MiCA to cover token payments and token deposits, according to Euronews. The report also said that policymakers want to provide greater legal clarity to US stablecoin issuers that want to operate in all 27 European Union member states, an issue that has gained urgency after the new US law.
Those talks come just days after the MiCA licensing system went into full effect. As of July 1, crypto firms serving clients in the European Union have had to obtain approval as Crypto-Asset Service Providers (CASPs) from a regulator in one of the member states before offering services across the board.
Even with those rules in force now, the European Commission has already opened a consultation on possible revisions to the framework. The consultation, often referred to by industry participants as “MiCA 2.0,” seeks answers to issues including decentralized finance, stablecoins and other areas that may require additional regulation. The public comment period will remain open until Aug. 31.
Administrators can add child custody updates as crypto laws change
Alongside the consultation process, European regulators are increasing supervision of companies already operating under MiCA. The European Securities and Markets Authority (ESMA) announced on Wednesday that it will examine the validity of the licenses of Crypto-Asset Service Providers, especially in operational risks related to custody.
According to ESMA, the review will start from July to the first half of 2027 and will examine how licensed crypto firms protect clients’ assets and manage operational disruptions under the new regulatory framework.
Developments in the United States continue to influence those discussions. In addition to the GENIUS Act, US lawmakers are developing the Digital Assets Market Transparency Act, a law aimed at establishing a framework for the market structure of digital assets. The bill has cleared two key House committees in the past year and is expected to move on to a Senate vote in July before lawmakers leave Washington for a month-long session.
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