European cryptocurrency regulation may reopen. According to Euronews, EU officials are considering amendments to the Markets in Crypto-Assets regulation, known as MiCA, which could extend oversight to companies outside the European Union issuing stablecoins. The reason is primarily pressure from the United States, where the GENIUS Act stablecoin law is already in effect.
MiCA is today considered one of the most comprehensive regulatory frameworks for cryptocurrencies in the world. The European Commission notes that the rules cover crypto-assets, stablecoins, their issuers, and crypto-asset service providers, known as CASPs. At the same time, the Commission already opened a consultation in May on whether the current framework remains appropriate given the rapid development of the market and international regulation. It is accepting comments until August 31, 2026.
Article Contents – MiCA 2.0:
Why There’s Talk of MiCA 2.0
European rules began to fully impact crypto service providers after the transitional period ended. Companies that want to offer services to users in the EU must have a Crypto-Asset Service Provider license from a regulator in one of the member states. This principle aims to create a single market across 27 EU countries and prevent crypto firms from only following the loosest national regulation.
However, practice shows that MiCA may not cover all new models emerging in the market. The most sensitive area is stablecoins—cryptocurrencies pegged to the value of a traditional currency or other asset. In practice, these are often tokens backed by the US dollar, used in trading, money transfers, and as infrastructure for new payment services.
According to Euronews, EU officials want to address in 2027 primarily the question of how to regulate stablecoins issued by companies outside the EU in Europe. The current framework reportedly does not explicitly address all situations where a non-European issuer issues a stablecoin that is subsequently used in the European market.
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The United States Has Accelerated. Europe Doesn’t Want to Fall Behind
The European debate was accelerated by the American GENIUS Act, which created a federal framework for issuing stablecoins in the United States. For Europe, this is important mainly because a large part of the global stablecoin market is tied to the US dollar. If the US sets clear rules for dollar stablecoins, it could strengthen their role in international payments and digital financial services.
Euronews notes that stablecoins in 2025 processed transactions worth $33 trillion according to Artemis Analytics data, representing year-over-year growth of 72%. At the same time, it states that approximately 95% of stablecoins worldwide are backed by the US dollar.
For the average user, this means a simple thing: stablecoins are no longer just a tool for traders on crypto exchanges. They are becoming part of a broader debate about the future of payments, cross-border transfers, and tokenized financial markets. And that’s precisely why not only crypto firms are increasingly interested in them, but also central banks, regulators, and traditional financial institutions.
Tokenized Payments and Deposits May Be Next
The planned revision is not supposed to concern only stablecoins. According to Euronews, EU officials are also considering extending the rules to tokenized payments and tokenized deposits. Tokenization generally means that a certain financial instrument, deposit, or payment claim is converted into digital form on a blockchain or other distributed technology.
The topic also appears in the European Commission’s consultation document. It asks what role stablecoins can play in the next five to ten years: whether they will be merely a supplement for cross-border payments, a means for crypto trading, or an important infrastructure for settling tokenized financial instruments.
Brussels is thus trying to determine whether a stablecoin should remain regulated primarily as a crypto-asset, or whether it is becoming a payment infrastructure. This is a key difference. If stablecoins begin to function similarly to regular payment money, regulators will likely place greater emphasis on reserves, liquidity, redemption rights, operational security, and user protection.
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DeFi Remains Another Open Question
The European Commission has also included decentralized finance, known as DeFi, in the consultation. DeFi was one of the areas that remained largely outside the main framework when MiCA was originally set up. The problem is that traditional financial regulation usually assumes the existence of a clearly identifiable company operating the service. With decentralized protocols, however, it can be harder to determine who is responsible for the service.
This is also important for licensed crypto firms. Some exchanges or wallets may provide users with access to DeFi applications that are not directly covered by MiCA themselves. Regulators are therefore addressing whether licensed companies should be required to verify the risks of such protocols if they actively make them available to customers.
The US Is Meanwhile Addressing Broader Digital Asset Rules
Stablecoins are not the only area where the United States is advancing digital asset regulation. American lawmakers are simultaneously negotiating the Digital Asset Market Clarity Act, known as the CLARITY Act. This aims to clarify the powers of financial regulators over the cryptocurrency sector and address, among other things, stablecoin rewards, anti-money laundering rules, DeFi, or tokenized securities.
Reuters reports that the proposal would, for example, determine when a platform is sufficiently decentralized and when it should instead be regulated as a financial institution. It would also confirm that the mere tokenization of a security does not mean escaping applicable securities rules.
For Europe, US developments are significant. Cryptocurrency regulation is increasingly becoming a geopolitical issue. It’s not just about investor protection, but also about who will set global standards for digital money, payment infrastructure, and tokenized markets.
ESMA to Review How Crypto Firms Protect Entrusted Assets
Alongside the debate on MiCA amendments, the EU is also focusing on supervision of firms that have already obtained licenses. The European Securities and Markets Authority ESMA announced on July 8 a joint supervisory action focused on the digital operational resilience of licensed crypto service providers, particularly in the area of asset custody.
The inspection will focus on risks associated with distributed ledger technology, key management, secure asset storage, transaction control, incident response, smart contract risks, and dependence on external vendors. National regulators will review a selected sample of licensed firms from the second half of 2026 to the first half of 2027.
For everyday cryptocurrency users, this is perhaps the most practical part of the entire report. Regulation is not just a matter of licensing forms. If an exchange or wallet provider holds client assets, they must be able to demonstrate that they can protect them both technically and organizationally.
What This Means for the Average Investor
For cryptocurrency users in the EU, nothing is changing overnight at this point. The key remains to monitor whether the platform they use complies with European rules and has the appropriate license. MiCA is meant to bring greater transparency, but it does not eliminate all risks of the crypto market on its own.
However, MiCA 2.0 may show that digital asset regulation does not end with the first major framework. Stablecoins, DeFi, and tokenized payments are evolving faster than legislation. The European Union therefore faces the task of maintaining consumer protection and financial stability without letting the entire market of technological innovation escape elsewhere.
The outcome will be important not only for crypto firms, but also for everyday investors. Stablecoin rules could determine which tokens will be available on European exchanges, how crypto payments will function, and how easily the European market will engage in the new phase of digital finance.
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