EU reviews MiCA rules as 20 euro stablecoins gain authorization

The European Commission is reviewing whether its landmark crypto framework needs updating for a market reshaped by stablecoins and tokenization.

The European Union's Markets in Crypto-Assets regulation took full effect July 1, ending the grandfathering period for crypto-asset service providers without full authorization, while the European Commission simultaneously launched a consultation to assess whether the framework remains fit for purpose.

"Being the first comprehensive crypto regulatory framework in the world, it was clear from the early days that it would be frequently reviewed with the pace of the crypto-asset and stablecoin markets," Patrick Hansen, director of EU strategy and policy at Circle, said.

The consultation, initiated in May, focuses on stablecoin reserve requirements, the potential introduction of a third-country equivalence regime, and the growing tokenization of real-world assets. Around 20 euro-denominated stablecoins have been authorized under MiCA, with adoption buoyed by formal regulation, Hansen said. The review comes as the U.S. advances its own stablecoin framework under the GENIUS Act, raising questions about whether MiCA's reserve rules — which require minimum bank deposits — put European issuers at a competitive disadvantage.

The commission's challenge will be striking a balance between opening the European market to global liquidity while preserving consumer protections that made MiCA a global benchmark, according to Sebastian Barling, partner for financial institutions regulatory at Skadden. "The consultation is clearly a serious review intended to make sure the European regime aligns internationally and remains competitive," he said.

The July 1 deadline triggered a wave of market exits and positioning. Binance, the world's largest crypto exchange by trading volume, remains unlicensed under MiCA after withdrawing its application in Greece. The largest MiCA-authorized exchanges by spot orderbook liquidity include OKX, Coinbase, Bybit, Crypto.com, Gate and Bitstamp, according to DefiLlama data. Platforms without full authorization must now cease operations in the bloc, with the European Securities and Markets Authority saying unauthorized firms must take "immediate" steps to wind down EU activities.

SwissBorg launched a campaign offering up to a 3% deposit match for users transferring assets from exchanges without full authorization, while Utorg received its MiCA license effective July 1, joining a small group of platforms cleared to operate across all 29 EEA member states. Gate Europe obtained its MiCA CASP license after eight years of preparation, describing the process as a multi-year investment in compliance infrastructure.

Stablecoin rules face scrutiny

When MiCA was drafted between 2020 and 2023, lawmakers were primarily focused on exchanges and other crypto-asset service providers, Eva Legler, counsel for financial institutions regulatory at Skadden, said. Since then, stablecoins have become central to global payments systems, prompting regulators to reassess their frameworks.

The commission has acknowledged that multi-issuance arrangements are not strictly prohibited under current rules but is considering tighter redemption safeguards to shield EU consumers from sudden liquidity shocks. Barling compared the EU's approach to building a "fortress," noting that requiring separate issuance and liquidity pools across jurisdictions risks undermining the efficiency that makes stablecoins valuable.

What comes next

The review could introduce a third-country equivalence regime, enabling mutual recognition of stablecoins regulated in other major jurisdictions. "We could benefit from the global, internet-native nature of these assets instead of fragmenting their circulation through locally fragmented rulebooks," Hansen said.

The commission's findings will shape the next phase of European crypto regulation, with amendments potentially addressing tokenization of real-world assets — a market Barling said has overtaken stablecoins as the dominant topic in regulatory discussions this year. "I think 2025 was probably the year of stablecoins. This year I've spent much more time talking about the broader tokenization of assets," he said.

This article is for informational purposes only and does not constitute investment advice.