Three years after MiCA became law, Europe's crypto framework is undergoing a rethink
CoinDesk 2026-07-02 11:55:03
Context: Europe's cryptocurrency framework, known as the Markets in Crypto Assets (MiCA), is undergoing a review, dubbed "MiCA 2.0," three years after it became law. The review aims to address the growing interest in stablecoins and tokenization, as well as concerns around their regulation and oversight. The European Central Bank and other policymakers are reevaluating their stance on stablecoins, with some moderating their opposition to their use in certain contexts.
Key Facts
- The European Securities and Markets Authority (ESMA) is likely to become the centralized supervisory body for the crypto regulatory framework under MiCA 2.0.
- The original MiCA regime was designed mainly for spot crypto, but the growing adoption of stablecoins and tokenization in institutional and wholesale finance has made this categorization too narrow.
- Dollar-denominated stablecoins account for $310 billion of the $311 billion market, with non-dollar stablecoins making up less than 0.5%, according to data from DeFiLlama.
- The EU Commission is considering revising the reserve requirements for stablecoins, potentially allowing a model similar to the GENIUS Act in the US, where stablecoin operators might buy money market instruments from European governments instead of routing funds back into the banking system.
- European authorities are debating how to treat multi-issuance stablecoins, such as Circle Internet's (CRCL) USDC, which can be minted by multiple distinct legal entities across different jurisdictions, yet presented to users as a single, fungible token.