EU Seeks to Update MiCA as US GENIUS Act Overhauls Stablecoin Regulations
The European Union is set to amend its Markets in Crypto-Assets framework in light of the U.S. GENIUS Act, with a regulatory overhaul of stablecoin guidelines and other digital asset regulations expected by 2027.
Summary
- The EU plans to revise MiCA in response to the changes brought by the U.S. GENIUS Act, which has reshaped the global stablecoin regulatory landscape.
- Officials may expand MiCA’s coverage to encompass non-EU stablecoin issuers, tokenized payments, and tokenized deposits.
- ESMA will assess custody risks of licensed Crypto-Asset Service Providers (CASPs) through mid-2027.
A report from Euronews on Wednesday indicated that officials in the European Commission are gearing up to revise certain elements of the Markets in Crypto-Assets (MiCA) regulation as the EU adjusts to transformations in the global regulatory framework.
The review will focus on how non-EU stablecoin issuers should be categorized under existing regulations following the implementation of the U.S. Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
Broadening stablecoin oversight beyond MiCA
In the forthcoming review, EU officials are prepared to consider broadening MiCA’s applicability to include tokenized payments and deposits. As reported by Euronews, policymakers aim to clarify the legal landscape for U.S.-based stablecoin issuers wishing to operate across the EU’s 27 member countries, especially after the U.S. law’s recent introduction.
These discussions come in the wake of the full activation of MiCA’s licensing framework. As of July 1, crypto companies serving EU customers must obtain authorization as Crypto-Asset Service Providers (CASPs) from a regulatory body in one of the member states before they can offer services across the EU.
Even with these regulations currently enforced, the European Commission has proactively launched a consultation for possible revisions to the MiCA framework. This consultation, often referred to as “MiCA 2.0,” seeks input from stakeholders on topics including decentralized finance, stablecoins, and other areas requiring additional regulatory focus. The public comment window will stay open until August 31.
Regulators step up custody reviews as crypto regulations advance
In conjunction with this consultation, European regulators are intensifying supervision of companies already functioning under MiCA. The European Securities and Markets Authority (ESMA) announced on Wednesday that it will evaluate the operational resilience of licensed Crypto-Asset Service Providers, concentrating on custody-related operational risks.
According to ESMA, this evaluation will occur from July through the first half of 2027, scrutinizing how licensed crypto companies safeguard customer assets and handle operational disruptions within the new regulatory environment.
Ongoing developments in the U.S. continue to influence these discussions. Complementing the GENIUS Act, U.S. lawmakers are advancing the Digital Asset Market Clarity Act, aimed at establishing a market structure for digital assets. This bill has successfully passed through two significant House committees in the past year and is anticipated to move to a Senate vote in July before lawmakers break for their month-long state work period.
Overall, the simultaneous regulatory efforts in Europe and the U.S. indicate that policymakers on both sides of the Atlantic are fine-tuning crypto regulations as stablecoins, tokenized financial products, and digital asset services become increasingly integrated into the financial ecosystem.