The European Commission launched a consultation on May 20 to review the Markets in Crypto-Assets Regulation (MiCA), nearly two years after its rollout. Stakeholders have until August 31 to submit feedback on how the framework is performing. MiCA, in force since 2024, was the first comprehensive crypto framework in a major jurisdiction, harmonizing rules for asset-referenced tokens, e-money tokens, and crypto-asset service providers across all 27 EU member states. The review aims to assess whether the rules still fit the fast-changing sector, with stablecoins remaining a contested element. While nearly 30 fiat-backed tokens have been approved, no asset-referenced token has been cleared yet. The review also faces global pressure as US and Asian regulators advance their own rules. European Central Bank President Christine Lagarde has backed a euro stablecoin response, and European banks are preparing a MiCAR-compliant stablecoin for 2026. Smaller crypto firms argue compliance costs push activity toward more flexible jurisdictions. Ondřej Kovařík, a key architect of MiCA, suggests that stablecoin rules are too strict for European issuers, leaving the market dominated by US dollar tokens, and that the framework should recognize equivalent regimes from countries like the UK or Switzerland. The August deadline gives Brussels a narrow window to gather positions before any legislative proposal, with potential outcomes ranging from minor technical fixes to a broader MiCA 2 effort.

Key facts

• Consultation opened May 20, feedback deadline August 31.
• MiCA, first comprehensive crypto framework, effective since 2024.
• Nearly 30 stablecoins approved; no asset-referenced token cleared.
• Stablecoin rules criticized as too strict for European issuers.
• Potential outcomes: minor fixes or broader MiCA 2 effort.